Coa M2010-003 PDF

2010-003
January 14, 2010

GUIDE IN THE AUDIT OF PROCUREMENT
(First Update December 2009)
with focus on the
Government Procurement Policy Board (GPPB) Circular No.

01-2009 dated January 22, 2009
Revised Implementing Rules and Regulations (IRR) of R.A. No.

9184 approved per GPPB Resolution No. 03-2009 dated July 22,
2009
Amendments to the Revised IRR of R.A. No. 9184 approved per

GPPB Resolution No. 06-2009 dated September 30, 2009
Public Bidding Documents 3rd Edition (October 2009) approved

per GPPB Resolution No. 05-2009 dated September 30, 2009
Guidelines for Shopping and Small-Value Procurement

approved per GPPB Resolution No. 09-2009 dated 23 November
2009
Amendments to the Revised IRR of RA 9184 approved per GPPB

Resolution No. 11-2009 dated 30 November 2009
Amendments to the Revised IRR of RA 9184 approved per GPPB

Resolution No. 13-2009 dated 16 December 2009
Technical Services Office

Special Services Sector
Commission on Audit
Republic of the Philippines
TABLE OF CONTENTS
Page
COA Memorandum adopting the Guide in the Audit of Procurement
Title page i
Acknowledgments ii
Table of Contents iv
I INTRODUCTION 1
The Development of the Audit Guide 2

Objectives of the Audit Guide 3
Scope and Limitations of the Audit Guide 3
II GENERAL INSTRUCTIONS ON THE USE OF THE GUIDE 7
III GUIDE IN THE AUDIT OF PROCUREMENT 10
On the Basic Elements
Bids and Awards Committee (BAC) 11

Bids and Awards Committees Secretariat 24
Annual Procurement Plan (APP) 29
Bids and Awards Committees Observers 35
Bids and Awards Committees Technical Working Group (TWG) 39
Customized Bidding Documents for Goods 42
Customized Bidding Documents for Infrastructure Projects 51
Customized Bidding Documents for Consulting Services 60
On the Procurement Procedures
COMPETITIVE / PUBLIC BIDDING FOR THE PROCUREMENT OF

75
GOODS
I. Bidding Documents 76
II. Pre-Procurement Conference 80
III. Advertising and Posting of the Invitation to Bid 87
IV. Posting of the Invitation to Bid 90
V. Issuance of Bidding Documents for the Procurement of Goods 93
VI. Pre-Bid Conference 96
VII. Supplemental / Bid Bulletins for the Procurement of Goods 103
VIII. Submission, Receipt, Opening of Bids and Preliminary
107
Examination of Bids for the Procurement of Goods
IX. Bid Evaluation for the Procurement of Goods 128
TABLE OF CONTENTS
X. Post-Qualification for the Procurement of Goods 137

XI. Award of Contract for the Procurement of Goods 153
XII. Failure of Bidding Declared By the BAC 169
XIII. Failure of Bidding Declared by the HOPE 175
ALTERNATIVE METHODS OF PROCUREMENT FOR GOODS 179

Limited Source Bidding 180
Direct Contracting 193
Repeat Order 202
Shopping 208
Negotiated Procurements
After Two (2) Failed Biddings 218
Emergency 244
Agency To Agency 249
Small Value Procurement 251
Defense Cooperation Agreement 262
United Nations Agencies 264
COMPETITIVE / PUBLIC BIDDING FOR THE PROCUREMENT

266
INFRASTRUCURE PROJECTS
III. Advertising and Posting of the Invitation to Bid 279
IV. Posting of the Invitation to Bid 283
V. Issuance Of Bidding Documents for the Procurement of
286
Infrastructure Project
VI. Pre-Bid Conference 289
VII. Supplemental / Bid Bulletins for the Procurement of
296
Infrastructure Project
Submission, Receipt, Opening Of Bids And Preliminary
VIII. Examination of Bids for the Procurement of Infrastructure 301
Project
IX. Bid Evaluation 318
X. Post Qualification 327
XI. Award of Contract 349
XII. Failure of Bidding Declared by the BAC 366
XIII. Failure of Bidding Declared By the HOPE
373

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TABLE OF CONTENTS
ALTERNATIVE METHODS OF PROCUREMENT FOR

INFRASTRUCTURE PROJECT 377
Negotiated Procurements:
After Two (2) Failed Biddings 378
Emergency Cases 406
Take Over of Contracts 411
Adjacent or Contiguous 421
Community Participation 431
Small-Value Procurement 437
Non-Governmental Organizations (NGOs) Participation 446
COMPETITIVE / PUBLIC BIDDING FOR THE PROCUREMENT OF

448
CONSULTING SERVICES
III. Advertising and Posting of the Request for Expression of Interest 461
IV. Posting of Request for Expression of Interest 465
V. Issuance of Bidding Documents to Consultants 468
VI. Eligibility Checking & Short listing of Consultants 470
VII. Pre-Bid Conference 486
Supplemental / Bid Bulletins for the Procurement of Consulting
VIII. 492
Services
Submission, Receipt, Opening Of Bids And Preliminary Examination of
IX. Bids for the Procurement of Consulting Services (Using Quality-Based 497
Evaluation Procedures)
Submission, Receipt, Opening of Bids and Preliminary Examination of
X. Bids for the Procurement of Consulting Services (Using Quality-Cost 521
Based Evaluation Procedures)
XI. Post Qualification 549
XII. Award of Contract 571
XIII. Failure of Bidding Declared by the BAC 588
XIV. Failure of Bidding Declared by the HOPE 594

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TABLE OF CONTENTS
ALTERNATIVE METHODS OF PROCUREMENT FOR

CONSULTING SERVICES 598
NEGOTIATED PROCUREMENT
LIMITED SOURCE BIDDING 599
AFTER TWO (2) FAILED BIDDINGS 611
EMERGENCY CASES 637
TAKE OVER OF CONTRACTS 642
ADJACENT OR CONTIGUOUS 653
AGENCY-TO-AGENCY 660
HIGHLY TECHNICAL CONSULTANTS 662
SMALL VALUE PROCUREMENT 666
On Offenses and Sanctions / Penalties 676
APPENDICES
1 List of Risks Associated with Procurement
2 Guidelines Clarifying the Procurement Activities which may be Undertaken Without

an Issued Allotment as approved through Government Procurement Policy Board
(GPPB) Circular 01-09 dated January 20, 2009
3 Revised Implementing Rules and Regulations (IRR) of Republic Act No. 9184 which
became effective in September 2, 2009 as approved through Government
Procurement Policy Board (GPPB) Resolution No. 03-2009 dated 22 July 2009
4 Amendments to the Revised Implementing Rules and Regulations (IRR) of Republic

Act No. 9184 as approved through Government Procurement Policy Board (GPPB)
Resolution No. 06-2009 dated 30 September 2009
5 Philippine Bidding Documents for the Procurement of Goods, 3rd Edition as approved
through Government Procurement Policy Board (GPPB) Resolution No. 05-2009
dated 30 September 2009
6 Philippine Bidding Documents for the Procurement of Infrastructure Projects,

3rd Edition as approved through Government Procurement Policy Board (GPPB)
Resolution No. 05-2009 dated 30 September 2009
7 Philippine Bidding Documents for the Procurement of Consulting Services, 3rd Edition
as approved through Government Procurement Policy Board (GPPB) Resolution No.
05-2009 dated 30 September 2009

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TABLE OF CONTENTS
8 Approving by Referendum, the Guidelines for Shopping and Small-Value

Procurement through Government Procurement Policy Board (GPPB) Resolution No.
09-2009 dated 23 November 2009
9 Approving Amendments to the Revised Implementing Rules and Regulations of

Republic Act No. 9184 through Government Procurement Policy Board (GPPB)
Resolution No. 11-2009 dated 30 November 2009
10 Approving Amendments to the Revised Implementing Rules and Regulations of

Republic Act No. 9184 through Government Procurement Policy Board (GPPB)
Resolution No. 13-2009 dated 16 December 2009

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I. INTRODUCTION
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Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 1
A. THE DEVELOPMENT OF THE GUIDE
The magnitude of the operations of the Government makes it undoubtedly the

biggest buyer of infrastructure projects, goods and services in the country. The billions of
pesos annually spent to buy the goods and services needed in its day-to-day activities
represent a significant percentage of government expenditures.
The volume of public expenditure passing through the public procurement system
has increased rapidly in the last few years. Averaging around P121 billion per year from
2003 to 2005, procurement expenditure jumped to P168 billion when the Governments
infrastructure program kicked off in 2006, and increased further to P229 billion by 2007.a
The money spent to finance these procurements came from various sources
including foreign borrowing and as such must have been used with prudence. However,
news of procurement transactions allegedly tainted with fraud had been hugging the
headlines incessantly.
In its continuing efforts to promote good governance the Government has

enacted laws on procurement, the latest of which is Republic Act No. 9184 otherwise
known as the Government Procurement Reform Act. This Act provides for the
Modernization, Standardization and Regulation of the Procurement Activities of the
Government and For Other Purposes and took effect on January 26, 2003, while its
Implementing Rules and Regulations Part A (IRR-A) took effect on 8 October 2003.
After five (5) years of implementation, much progress has been made in
procurement reforms in terms of rules and regulations but implementation and
enforcement are still weak, and the objectives of the reform have not been fully
achieved. This scenario is consistent with perceptions of a high level of corruption in
procurement and with the SWS survey findings that only 13 percent of the public is
aware of the new procurement law and its intended benefits.b
As to the assessment on the Internal Control and Audit, the finding is that
procurement audit is not yet given enough focus in most of the audit programs because
most auditors have inadequate knowledge of the law, its implementing rules, the
harmonized bidding documents and contract forms, and the procurement manuals; and
there is no procurement audit guide to act as the basis for including procurement audit in
the annual audit program. Most auditors are not trained to carry out risk-based audit
tailored for risk management. Recommendation: A procurement audit guide should be
developed and implemented by COA with particular focus on the audit of the
implementation of the GPRA. A training program on procurement should be developed
and implemented for auditors with the procurement audit guide as a training material,
and both the guide and the training should include a risk-based approach to audit. c
The 1987 Constitution provides for an independent Commission on Audit (COA)

that has the power to audit all accounts pertaining to government funds nationwide,
including procurement-related transactions. The Government Auditing Code (PD 1445)
empowers COA to determine policies, promulgate rules and regulations, and prescribe
standards governing the performance of its powers and functions and realizing the need
to address the Country Procurement Assessment Report (CPAR) findings and
recommendation, development of this Guide in the Audit of Procurement is imperative.
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B. OBJECTIVES OF THE GUIDE
This Guide is intended as a reference and guidance material for COA

auditors in planning for, conducting and reporting on the results of the audit on the area
of procurement.
COA Auditors are provided with e-copies of this Guide to enable them to
immediately utilize the audit matrices as working papers in their audits. They may also
modify some aspects of these audit matrices to fit their particular needs. In the process,
each individual auditors copy of the Guide becomes unique to him/her as it reflects
enhancements which he/she built into the Guide with constant use.
Under a risk-based audit approach, audit foci, objectives and audit techniques are
identified through a risk-assessment process which auditors perform following existing
COA regulations. For the purpose of this Guide, audit foci, audit objectives/sub-
objectives, audit techniques, and even suggested audit working papers have been
developed with no particular risk in mind. Auditors may adopt portions of the Guide
which they consider appropriate for their risk-based audit purposes. To aid auditors in
their risk assessment activities, a list of risks associated with procurement have been
developed and included in this Guide as APPENDIX 1.
It is hoped that as Auditors use this Guide they will identify other risks which are
specific to their auditee entities and analyze them to identify the appropriate audit
criteria, develop the appropriate audit objectives, identify the audit techniques, develop
the audit programs and design the audit working papers.
Auditors are encouraged to provide feedback for improvement, through the COA
Directors who have supervision over them, including the inclusion in this Guide of the
risks, audit objectives, audit techniques, audit programs, and audit working papers they
have developed.
The public is likewise encouraged to provide feedback to improve the Guide,

either through any COA auditor they are acquainted with or through the COA Website:
http://www.coa.gov.ph.
From the feedback and the continuing policy study, this Guide is expected to
evolve through updates which will be issued as they are developed.
C. SCOPE AND LIMITATIONS OF THE GUIDE
Procurement refers to the acquisition of goods, consulting services, and the

contracting for infrastructure projects by the procuring entity. In case of projects
involving mixed procurements, the nature of the procurement, i.e., goods, infrastructure
projects, or consulting services, shall be determined based on the primary purpose of the
contract. Procurement also includes the lease of goods and real estate. With respect to
real property, its procurement shall be governed by the provisions of Republic Act No.
8974 and other applicable laws, rules and regulations.d
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This Guide in the Audit of Procurement will neither cover the entire gamut of
procurement nor all possible related risks that could be subject to audit.
The scope of the Guide is limited to the following:
1. Elements of Procurement
a. Annual Procurement Plan (APP)
b. Bids and Awards Committee (BAC)
c. BAC Observers
d. BAC Secretariat
e. BAC Technical Working Group (TWG)
f. Bidding Documents
2. Procurement Processes:
a. Competitive Bidding (from Bidding Documents to Award of
Contract) for Procurement of Goods
b. Alternative Methods of Procurement for Goods
c. Competitive Bidding (from Bidding Documents to Award of
Contract) for Procurement of Infrastructure Projects
d. Alternative Methods of Procurement for Infrastructure Projects
e. Competitive Bidding (from Bidding Documents to Award of
Contract) for Procurement of Consulting Services
f. Alternative Methods of Procurement for Consulting Services
3. Offenses and Penalties
The Guide may be used as a reference in the:
evaluation of compliance with the requirements of applicable laws, rules and

regulations which is a component of the auditorial review provided in COA Circular No.
2009-001 dated February 12, 2009 on the subject: Restatement with Amendments of
COA Circular No. 87-278 and COA Memorandum 2005-027 re: submission of copy of
government contracts, purchase orders and their supporting documents to the
Commission on Audit,
review of bidding procedures, necessity and validity of other alternative

modes of procurement and manner of award to the winning bidder/contractor and such
other relevant requirements provided in RA No. 9184 and its implementing rules and
regulations provided in item 4.3.6 of COA Circular No. 2009-002 dated May 18, 2009
dated May 18, 2009 on the subject: Reinstituting Selective Pre-Audit on Government
Transactions.
The extent of audit that can be conducted based on the Guide will be limited to
the specific elements (areas/foci), procurements processes, audit objectives/sub-
objectives and audit activities mentioned in the various components of the Guide.
The audit criteria used in the Guide are those prevailing at the time of the
development of the Guide as follows:
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1. Guidelines Clarifying the Procurement Activities which may be Undertaken
Without an Issued Allotment, approved per Government Procurement Policy
Board (GPPB) Circular No. 01-2009 dated January 22, 2009 (attached to this
Guide as APPENDIX 2);
2. Revised Implementing Rules and Regulations (IRR) of R.A. No. 9184,

approved per Government Procurement Policy Board (GPPB) Resolution No.
03-2009 dated July 22, 2009 (attached to this Guide as APPENDIX 3);
3. Amendments to the Revised IRR approved per Government Procurement

Policy Board (GPPB) Resolution No. 06-2009 dated September 30, 2009
(attached to this Guide as APPENDIX 4);
4. Philippine Bidding Documents 3rd Edition (October 2009) approved per GPPB
Resolution No. 05-2009 dated September 30, 2009 (attached to this Guide as
APPENDIX 5);
5. Approving by Referendum, the Guidelines for Shopping and Small-Value

Procurement approved per Government Procurement Policy Board (GPPB)
Resolution No. 09-2009 dated 23 November 2009 (attached to this Guide as
APPENDIX 6);
6. Amendments to the Revised IRR approved per GPPB Resolution No. 11-2009
dated 30 November 2009 (attached to this Guide as APPENDIX 7);
7. Amendments to the Revised IRR approved per Government Procurement

Policy Board (GPPB) Resolution No. 13-2009 dated 16 December 2009
(attached to this Guide as APPENDIX 8).
Amendments, revisions, repeal, and other changes in the above-mentioned law,

rules and regulations will have the effect of correspondingly changing the affected
portions of this Guide. Users of this Guide should therefore apprise themselves of the
laws/regulations prevailing as of the time of planning for, execution of, and reporting on
the audit and correspondingly modify the portions of the Guide affected by such
amendments, revisions, repeal, and other changes in the above-mentioned law, rules and
regulations. For the purpose, they may avail of the internet facilities of the GPPB:
www.gppb.gov.ph
gppb@gppb.gov.ph
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END NOTES
a. World Banks Country Procurement Assessment Report (Philippines) 2008, p. 14
b. World Banks Country Procurement Assessment Report (Philippines) 2008, p. 17
c. World Banks Country Procurement Assessment Report (Philippines) 2008, p. 37
d. Section 5(n), Republic Act No. 9184 otherwise known as the Government
Procurement Reform Act (GPRA) which became effective in January 26, 2003
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II. GENERAL INSTRUCTIONS ON THE USE OF THE GUIDE
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Following are the steps to be considered by the user of this Guide:
Step 1 Determine the audit areas and audit objectives based on Risk Assessment
pursuant to existing regulations and/or on requirements of other regulations
(e.g. COA Circular No. 2009-002 on selective pre-audit).
Procurement as defined in R.A. No. 9184 should be identified as an audit area.

The audit sub-areas should likewise be identified. The Table of Contents of this
Audit Guide will be useful for the purpose of identifying these audit sub-areas.
For each sub-area, the audit objectives shall be identified based on the risks
determined during the Risk Assessment and/or based on the requirements of
existing regulations (e.g. COA Circular No. 2009-002 on selective pre-audit).
Step 2 - Determine the audit scope (e.g. For Financial/Compliance Audit procurement
activities and transactions subject to audit during a calendar year).
Step 3 Determine the audit criteria that are relevant to the identified risks and audit
scope.
The audit criteria identified in the Audit Guide were the IRR of RA No. 9184 and
GPPB issuances prevailing during the time of the development of the Guide. For
his/her specific audit scope, the auditor shall determine versions of RA 9184, its
IRR and GPPB issuances and identify those that are applicable to the
procurements subject of his/her audit.
If no changes/updates have occurred, the Audit Guide may be used as is.
Otherwise, the audit criteria as quoted in the first column of the audit matrices of
this Guide shall be changed to reflect those that are applicable to the audit scope.
Step 4 Determine the audit sub-objectives.
The audit sub-objectives in the first column of the audit matrices shall correspond
to the identified audit objective(s) and the audit criteria identified in Step 3 above.
Step 5 Determine the audit activities that will attain the audit sub-objectives.
The Audit Activities identified in the Guide are mere suggestions and may be
substituted by the auditor with more effective, efficient, and economical activities
which are more workable under his/her specific audit situation.
Step 6 Determine the audit questions that will match the audit sub-objectives.
The audit questions in the 3rd column of the audit matrices of this Guide shall be
changed to correspond to the identified audit sub-objectives.
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It is suggested that the auditor be proactive in the sense that he/she should have
already conducted auditorial review on the audit sub-areas that will impact on the
succeeding sub-areas and/or audit sub-objectives where audit findings/conclusions of
non-compliance will result in audit decisions leading to the recommendations of
imposition of sanctions on liable/responsible persons and/or recommendations of
recovery of pecuniary losses on the part of the Procuring Entity.
The Guide is to be used according to the following sequence:
At any time during the Audit Period prior to Any Procurement
1st: Basic Element Bids and Awards Committee (BAC)
2nd: Basic Element - BAC Secretariat
3rd: Basic Element Annual Procurement Plan (APP)
4th: Basic Element Customized Bidding Documents
During Specific Procurements
5th: Basic Element BAC Observers
6th: Basic Element BAC Technical Working Group (TWG)
7th: Procurement Process - depending on the item to be procured, i.e.,

goods, infrastructure projects or consulting services & depending on the
method of procurement, i.e., competitive bidding or alternative method
of procurement
Upon discovery of non-compliances either through the Procurement

Monitoring Reports or during the audit conducted
Offenses and Penalties
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III. GUIDE IN THE AUDIT OF PROCUREMENT
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On the Basic Element:
BIDS AND AWARDS COMMITTEE (BAC)
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BASIC ELEMENT BIDS AND AWARDS COMMITTEE
A. AUDIT OBJECTIVES:
1. To verify the existence of the Bids and Awards Committee (BAC),
2. To verify if the BAC composition is in accordance with laws/regulations,
3. To verify if the term of members of the BAC is fixed at one (1) year reckoned from the
date of appointment.
4. To verify if the BAC prepared a procurement monitoring report as required by

regulations and had it approved by the Head of the Procuring Entity for submission to the
GPPB within the required timeline.
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
List of documents needed (those applicable to the procurements subject of audit for the audit period):
1. Appointment of the Head of the Procuring Entity (HOPE), if an individual;

2. Office Order of or the GOCC/GFI Board Resolution designating/authorizing a specific official to act on
his/her/their behalf;
3. Office Orders creating the previous BACs and the present BAC;
4. Office Orders designating the Chairman and Vice-Chairman of the BAC;
5. Office Orders designating the alternate members of the BAC;
6. Office Orders of replacements and evidences of absence of the BAC members they are replacing and
the period of absence (e.g. approved applications for leave);
7. Plantilla/Organizational Chart of the procuring entity;
8. Work History and evidences of training on procurement of BAC members;
9. Minutes of meeting of LGU BAC electing the Chairman and Vice-Chairman;
10. Approved Procurement Monitoring Reports;
11. Others as appropriate based on the audit sub-objective and audit activity.
Audit Sub-objective Suggested Audit Working Paper

Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
1. To verify if a Bids and Awards 1. From the documents Is there a BAC in
Committee (BAC) exists in the (e.g. Office Orders, the procuring
procuring entity Resolutions) relative to entity?
procurements to be
Implementing Rules and Regulations audited evidencing the
(IRR) of RA 9184, as amended on creation of the BAC, using
September 2, 2009: the one (1) year term
11.1.1 Each procuring entity shall from the creation of the
establish in its head office a single BAC BAC as basis, determine if
to undertake the functions specified in a BAC existed for the
Section 12 of the Revised IRR of RA procurements at hand or
9184 in order to facilitate for future procurements to
professionalization and harmonization be subject of audit.
of procedures and standards.
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the Answer
2. To verify if the Head of the 2. Compare the Office Was the BAC
Procuring Entity (HOPE) was the Order(s) creating the created by the
one that created the BAC BAC(s) as follows: Head of the
Procuring Entity
Implementing Rules and Regulations a. Name and position of (HOPE)?
(IRR) of RA 9184, as amended on the signatory vs. the
September 2, 2009: name and position of
the HOPE per his
11.2.1 The Head of the Procuring Entity appointment/
shall designate at least five but not designating Office or
more than seven members of the BAC Assignment Order;
of unquestionable integrity and
procurement proficiency. b. In NGAs, constitutional
commissions or offices,
5 (t). Head of the Procuring Entity. and branches of
Refers to: (i) the head of the agency or government; and in
body, or his duly authorized official, for GOCCs, GFIs, and
NGAs and the constitutional SUCs, if the HOPE is
commissions or offices, and branches of not the signatory,
government; (ii) the governing board or
its duly authorized official, for GOCCs, Name and position of
GFIs and SUCs; or (iii) the local chief the signatory vs. the
executive for LGUs: Provided, however, name and position of
That in an agency, department, or the duly authorized
office where the procurement is official per Office Order
decentralized the head of its or Board Resolution
decentralized unit shall be considered designating him/her.
as the head of the Procuring Entity,
subject to the limitations and authority
delegated by the head of the agency,
department, or office.
3. To verify if the number of BAC 3. Compare the number Did the number of
members conforms to the of BAC members per BAC members
required number of at least 5 but Office Order(s) with the conform to the
required number. required number of
not more than 7
at least 5 but not
more than 7?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009: If the number of
11.2.1 The Head of the Procuring Entity BAC members is
shall designate at least five but not equal to the
more than seven members of the BAC minimum of 5, were
of unquestionable integrity and there only three (3)
procurement proficiency. regular members
and two (2)
provisional
members?
If the number of
BAC members is
equal to six (6),
were there:
a. three (3) regular

members and three
(3) provisional
members?
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the Answer
OR
b. at most four (4)

regular members
and two (2)
provisional
members?
If the number of
BAC members is
equal to the
maximum of seven
(7), were there:
a. three (3) regular

members and at
most four (4)
provisional
members?
OR
b. four (4) regular

members and three
(3) provisional
members?
OR
c. at most five (5)
regular members
and two (2)
provisional
members?
4. For head offices of National 4. Verify from the Office Was the BAC
Government Agencies/ GOCCs/GFIs, Order constituting the BAC Chairman
to verify if the qualifications of the if the Chairman was designated as such?
regular members of the BAC designated as such.
conform with the requirements: 5. Compare the rank and Was the BAC
a. Chairman - at least a third status of the BAC Chairman:
ranking permanent official of Chairman per Plantilla of
the Procuring Entity with a. at least a 3rd
the procuring entity;
the required at least 3rd ranking official of
b. representative of the Legal or the Procuring
Administrative area, at least a rank and permanent
status. Entity?
5th ranking permanent official
of the procuring entity with b. of permanent
status?
knowledge, experience and/or
expertise in procurement; 6. For Regular Members, Were Regular
c. representative of the Finance compare their rank and Members of the BAC
area, at least a third ranking status per Plantilla of the at least 5th ranking
permanent official of the Procuring Entity with the officials of the
procuring entity with required at least 5th rank Procuring Entity?
knowledge, experience and/or and permanent status.
expertise in procurement
7. For Regular Members, Were Regular
Implementing Rules and Regulations compare their status per Members of the BAC
(IRR) of RA 9184, as amended on Plantilla of the Procuring of permanent
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the Answer
September 2, 2009: Entity and per his/her status?
appointment, with the
11.2.2. The BAC for NGAs, required permanent
departments, bureaus, offices, or status.
instrumentalities of the GOP, including
the judicial and legislative branches, 8. For Regular Members, Were Regular
constitutional commissions, SUCs, verify from their Work Members with
GOCCs, and GFIs shall be composed of History and training knowledge,
the following: documents if they have experience and/or
knowledge, experience expertise in
Regular Members and/or expertise in procurement?
a. Chairman, who is at least a third procurement;
ranking permanent official of the
procuring entity; 9. For Regular Members, Was/Were there
b. An officer, who is at least a fifth verify from their work Regular members
ranking permanent official, with assignments if at the time representing the
knowledge, experience and/or of designation the legal legal or
expertise in procurement who, to the area or administrative administrative area
extent possible, represents the legal areas and the financial of the Procuring
or administrative area of the area were represented. Entity?
procuring entity, provided that in the
case of bureaus, regional offices and Was/Were there
sub-regional/district offices, BAC Regular members
members shall be at least a third representing the
ranking permanent personnel; financial area of the
c. An officer, who is at least a fifth Procuring Entity?
ranking permanent official, with
expertise in procurement who, to the
extent possible, represents the
finance area 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
ranking permanent personnel.
5. For bureaus, regional offices 10. Verify from the Office Was the BAC
and sub-regional/district offices Order constituting the BAC Chairman
of NGAs, departments, or if the Chairman was designated as such?
designated as such.
instrumentalities of the
Government of the Philippines 11. Compare the rank Was the BAC
(GOP), including the judicial and and status of the BAC Chairman:
legislative branches, Chairman per Plantilla of
a. at least a 3rd
constitutional commissions, the Procuring Entitys
ranking official of
SUCs, GOCCs, and GFIs, to verify if bureau, regional office,
the Procuring
the qualifications of the regular sub-regional office, or
Entitys bureau,
district office with the
BAC members conform to the regional office,
required at least 3rd rank
requirements: in said Office and
sub-regional
a. Chairman, at least a 3rd office, or district
permanent status.
ranking permanent official of office?
the procuring entity; b. of permanent
b. Legal or Administrative area status?
representative, at least a 3rd
12. For Regular Members, Were Regular
ranking permanent official of
compare their rank and Members of the BAC
the procuring entity with status per Plantilla of the at least 3rd ranking
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the Answer
expertise in procurement; Procuring Entitys bureau, officials of the
c. Finance area representative, at regional office, sub- Procuring Entitys
least a 3rd ranking permanent regional office, or district bureau, regional
office with the required at office, sub-regional
official of the procuring entity
least 3rd rank and office, or district
with knowledge, experience permanent status. office?
and/or expertise in
procurement 13. For Regular Members, Were Regular
compare their status per Members of the BAC
Implementing Rules and Regulations Plantilla of the Procuring of permanent
(IRR) of RA 9184, as amended on Entitys bureau, regional status?
September 2, 2009: office, sub-regional office,
or district office and per
11.2.2. The BAC for NGAs, his/her appointment, with
departments, bureaus, offices, or the required permanent
instrumentalities of the GOP, including status.
the judicial and legislative branches,
constitutional commissions, SUCs, 14. For Regular Members, Were Regular
GOCCs, and GFIs shall be composed of verify from their Work Members with
the following: History and training knowledge,
documents if they have experience and/or
Regular Members knowledge, experience expertise in
a. Chairman, who is at least a third and/or expertise in procurement?
ranking permanent official of the procurement.
procuring entity;
b. An officer, who is at least a fifth 15. For Regular Members, Was/Were there
ranking permanent official, with verify from their work Regular members
knowledge, experience and/or assignments if at the time representing the
expertise in procurement who, to the of designation the legal legal or
extent possible, represents the legal area or administrative administrative area
or administrative area of the areas and the financial of the Procuring
procuring entity, provided that in the area of the Procuring Entitys bureau,
case of bureaus, regional offices and Entitys bureau, regional regional office, sub-
sub-regional/district offices, BAC office, sub-regional office, regional office, or
members shall be at least a third or district office were district office?
ranking permanent personnel; represented.
c. An officer, who is at least a fifth Was/Were there
ranking permanent official, with Regular members
knowledge, experience and/or representing the
expertise in procurement who, to the financial area of the
extent possible, represents the Procuring Entitys
finance area of the procuring entity, bureau, regional
provided that in the case of bureaus, office, sub-regional
regional offices and sub- office, or district
regional/district offices, BAC office?
members shall be at least a third
ranking permanent personnel.
11.2.2.
The Chairman and the Vice-Chairman
shall also be designated by the Head of
the procuring entity. Moreover, the
Vice-Chairman shall be a regular
member of the BAC.
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Prepared by:
Commission on Audit
the Answer
6. For National Government 16. Verify from the Office Was the BAC Vice-
Agencies/GOCCs/GFIs, to verify if Order if from among the Chairman
the Vice-Chairman was Regular Members of the designated as such
designated by the Head of the BAC, the Vice-Chairman from the regular
procuring entity from the was designated as such. members of the
BAC?
regular members of the BAC

September 2, 2009:
11.2.2.
The Chairman and the Vice-Chairman
shall also be designated by the Head of
the procuring entity. Moreover, the
Vice-Chairman shall be a regular
member of the BAC. For purposes of
this IRR, the term permanent shall
refer to a plantilla position within the
procuring entity concerned.
7. For local government units, to For Local Government

verify if the BAC is composed of Units (LGUs):
one representative each from the
17. Compare the Office Are the members of
regular offices under the Office
assignments as indicated the BAC from the
of the Local Chief Executive in the Appointment and regular offices
Assignment Documents of under the Office of
Implementing Rules and Regulations the designated members the Local Chief
(IRR) of RA 9184, as amended on of the BAC with the Executive?
September 2, 2009: regular Offices under the
11.2.3.The BAC for Local Government Office of the Local Chief
Units shall be composed of the Executive per LGUs
following: Organizational/ Functional
chart.
a. One representative each from the
regular offices under the Office of
the Local Chief Executive such as,
but not limited to, the following:
Office of the Administrator, Budget
Office, Legal Office, Engineering
Office, General Services Offices;
and
b. A representative from the end user
unit.

verify if at least one of the Units (LGUs):
members represents the end-
18. Compare the Office Is there a
user unit
assignment of the representative in
designated member- the BAC from the
representative-of-the-end end user unit?
user unit to the BAC as
September 2, 2009:
indicated in the Office
11.2.3.The BAC for Local Government Order creating the BAC
Units shall be composed of the with the Office assignment
following: of the official as it appears
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Prepared by:
Commission on Audit
the Answer
in the Appointment
a. One representative each from the documents/Assignment
regular offices under the Office of Order.
the Local Chief Executive such as,
but not limited to, the following:
Office of the Administrator, Budget
Office, Legal Office, Engineering
Office, General Services Offices;
and
b. A representative from the end user
unit.

verify if the members of the BAC Units (LGUs):
are personnel occupying plantilla
19. From the Appointment Did the members of
positions of the procuring entity
documents/Assignment the BAC occupy
concerned Orders of the members of plantilla positions of
Implementing Rules and Regulations the BAC obtain the procuring entity
(IRR) of RA 9184, as amended on information on their concerned?
September 2, 2009: respective position titles
and compare these with
11.2.3.The BAC for Local Government the Plantilla of the
Units shall be composed of the Procuring Entity.
following:
a.
b.
The members shall elect among

themselves who shall act as Chairman and
Vice-Chairman. The Chairman of the BAC
shall be at least a third ranking permanent
official of the procuring entity. The
members of the BAC shall be personnel
occupying plantilla positions of the
10. For local government units, For Local Government

to verify if the designated Units (LGUs):
members of the BAC elected 20. From the relevant Did the members of
among themselves who shall act Minutes of meetings of the BAC elect
as Chairman and Vice-Chairman. the BAC, compare the among themselves:
name and position of the
Chairman with the name a. the Chairman?
and position of the person
September 2, 2009:
elected by the members b. Vice Chairman?
11.2.3.The BAC for Local Government from among themselves
Units shall be composed of the to act as Chairman and
following: Vice-Chairman.
a. 21. Compare the rank and Was the Chairman

b. status of the BAC of the BAC:
Chairman per Plantilla of
The members shall elect among the Procuring Entity with a. at least a 3rd
themselves who shall act as Chairman and the required at least 3rd ranking official of
Vice-Chairman. The Chairman of the BAC rank and permanent the procuring
shall be at least a third ranking permanent status. entity?
official of the procuring entity. The
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Prepared by:
Commission on Audit
the Answer
members of the BAC shall be personnel b. a permanent
occupying plantilla positions of the official of the
procuring entity concerned. procuring entity?
11. To verify if designated 22. For alternate Were the
alternate members of the BAC members, compare the qualifications of
have the same qualifications as qualifications of designated alternate
designated alternate members of the BAC
their principals
members of the BAC with the same as the
Implementing Rules and Regulations the qualifications of their qualifications of
(IRR) of RA 9184, as amended on principals. their principals?
September 2, 2009:
11.2.4. The Head of the Procuring
Entity may designate alternate
members to the BAC, who shall have
the same qualifications as their
principals as set in the Act and this IRR.
The alternate members shall attend
meetings of the BAC and receive the
corresponding honoraria, whenever
their principals are absent. The
alternate members shall have the same
term as their principals. The
accountability of the principal and the
alternate member shall be limited to
their respective acts and decisions.
12. To verify if the members of 23. From the Office Was the term of all
the BAC have a fixed term of 1 Orders creating the members of the BAC
year reckoned from the date of previous BACs and the within the fixed
Office Order of the new term of one (1) year
appointment, renewable at the
BAC, compare the term of reckoned from the
discretion of the HOPE
all members of the BAC date of
Implementing Rules and Regulations with the fixed term of one appointment?
(IRR) of RA 9184, as amended on (1) year reckoned from
September 2, 2009: the date of appointment,
11.2.6. Unless sooner removed for a renewable at the
cause, the members of the BAC shall discretion of the Head of
have a fixed term of one (1) year the Procuring Entity.
reckoned from the date of appointment,
renewable at the discretion of the Head 24. For a BAC member Was the term of
of the Procuring Entity. Upon expiration designated to replace a replacements for
of the terms of the current members, resigned, retired, reason of
they shall continue to exercise their separated, transferred, re- resignation,
functions until new BAC members are assigned, removed, or retirement,
designated. In case of resignation, dead member, compare separation, transfer,
retirement, separation, transfer, re- his/her term with the un- re-assignment,
assignment, removal, or death, the expired term. removal, or death
replacement shall serve only for the within the un-
unexpired term: Provided, however, expired term only?
That in case of leave or suspension, the
25. For a BAC member Was the term of
replacement shall serve only for the
designated to replace a replacements for
duration of the leave or suspension. For
member who went on reason of leave or
justifiable causes, a member shall be
leave or was suspended, suspension within
suspended or removed by the Head of
compare his/her term with the duration of the
the Procuring Entity.
the duration of the leave said leave or
or suspension. suspension only?
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Prepared by:
Commission on Audit
the Answer
13. To verify if the HOPE and/or 26. Compare the name Is the HOPE:
approving authority is not the and position of the Head
Chairman or a member of the BAC of the Procuring Entity a. NOT the
and/or the approving Chairman of the
Implementing Rules and Regulations authority (from BAC?
(IRR) of RA 9184, as amended on Appointment
September 2, 2009: documents/election AND
11.2.5. In no case shall the Head of the documents/relevant Office
Procuring Entity and/or the approving b. NOT a member
Orders/ Assignment
authority be the Chairman or a member of the BAC?
Orders) with the names
of the BAC. and positions of the
Chairman and all Is the approving
members of the BAC. authority:
a. NOT the
Chairman of the
BAC?
AND
b. NOT a member
of the BAC?
PROCUREMENT MONITORING REPORT

1. To verify if the BAC: 1. Based on approved Did the BAC prepare
a. prepared a procurement Procurement Monitoring the procurement
monitoring report in the form Reports and monitoring reports
communications on in the form
prescribed by the GPPB;
submissions (by the BAC prescribed by the
b. covering all procurement
to the HOPE and by the GPPB?
activities specified in the HOPE to the GPPB)
Annual Procurement Plan obtained from the BAC or
(APP), whether on-going and the Office of the HOPE
completed, from the holding of and on a copy of the form
the pre-procurement required by the GPPB,
conference to the issuance of determine if the Reports
the notice of award and the are in the form prescribed.
approval of the contract,
2. Based on approved Did the
including the standard and
Procurement Monitoring procurement
actual time for each major Reports and monitoring reports
procurement activity; communications on prepared by the
c. submitted the monitoring submissions (by the BAC BAC cover:
report to the Head of the to the HOPE and by the
Procuring Entity (HOPE) for HOPE to the GPPB) a. all procurement
approval and submission to obtained from the BAC or activities specified in
the Office of the HOPE, the APP, whether
the GPPB in printed and
determine if the Reports on-going and
electronic format within 14 completed?
covered all the items
days after the end of each
required.
semester b. from the holding
of the pre-
Implementing Rules and Regulations procurement
(IRR) of RA 9184, as amended on conference to the
September 2, 2009: issuance of the
12.2. The BAC shall be responsible for notice of award and
ensuring that the procuring entity abides the approval of the
by the standards set forth by the Act and contract?
this IRR, and it shall prepare a
c. standard and
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Prepared by:
Commission on Audit
the Answer
procurement monitoring report in the actual time for each
form prescribed by the GPPB. The major procurement
procurement monitoring report shall cover activity?
all procurement activities specified in the
APP, whether ongoing and completed,
from the holding of the pre-procurement 3. Based on approved Did the BAC submit
conference to the issuance of notice of Procurement Monitoring the procurement
award and the approval of the contract, Reports and monitoring reports
including the standard and actual time for communications on to the HOPE:
each major procurement activity. The submissions (by the BAC
procurement monitoring report shall be to the HOPE and by the a. for approval?
approved and submitted by the Head of HOPE to the GPPB)
the Procuring Entity to the GPPB in obtained from the BAC or b. for submission to
printed and electronic format within the Office of the HOPE, the GPPB in both
fourteen (14) calendar days after the end verify if the Reports were printed and
of each semester. submitted by the BAC to electronic format?
the HOPE for approval
Annex C and submission to the c. for submission to
Period of Action on Procurement GPPB in both printed and the GPPB within 14
Activities electronic format within calendar days after
14 calendar days after the end of each
the end of each semester. semester?
2. To verify if the HOPE: 4. Based on approved Did the HOPE

Procurement Monitoring approve
a. approved the Procurement Reports and procurement
communications on monitoring reports?
Monitoring Report and
submissions by the HOPE
b. submitted it to the GPPB in to the GPPB obtained from
printed and electronic format the BAC or the Office of Did the HOPE
within 14 days after the end of the HOPE, verify if the submit the
each semester Reports were approved by procurement
the HOPE and submitted monitoring reports
Implementing Rules and Regulations to the GPPB in both to the GPPB in both
(IRR) of RA 9184, as amended on printed and electronic printed and
September 2, 2009: format within 14 calendar electronic format?
12.2. The procurement monitoring days after the end of
report shall be approved and submitted by each semester.
the Head of the Procuring Entity to the Did the HOPE
GPPB in printed and electronic format submit the
within fourteen (14) calendar days after approved
the end of each semester. procurement
monitoring reports
to the GPPB
within 14 calendar
days after the end
of each semester?
3. To verify if appropriate actions 5. Identify instances of Were appropriate

have been taken by the HOPE noncompliance actions taken by the
in case of instances of discovered by the BAC auditee in regard to
and/or by the HOPE in instances of non-
noncompliance committed by
the Procurement compliance?
the BAC, BAC TWG, BAC
Monitoring Report;
Secretariat and/or bidders and, instances of
noncompliance noted
during the course of
the audit.
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Prepared by:
Commission on Audit
the Answer
Look for
information/documents on
the actions taken by the
auditee in regard to such
non-compliances and
compare these with the
actions required by the
Revised IRR of RA 9184
and other relevant
regulations.
4. To verify what actions have 6. Request for Did the GPPB take
been taken by the GPPB in information from the action on instances
regard to instances of GPPB on the actions of noncompliance
they have taken on involving the
noncompliance
instances of auditee, including
noncompliance non-submission of
involving the auditee, the Procurement
including non- Monitoring Report?
September 2, 2009:
submission of the
63.1. The Government Procurement
Procurement
Policy Board (GPPB), as established in
Monitoring Report.
Section 63 of the Act, shall have the
following duties and responsibilities:
a.

d. To ensure the proper
implementation by procuring entities
of the Act, this IRR and all other
relevant rules and regulations
pertaining to public procurement.
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT

1. To verify the effects of Analyze the instances of Appropriate Audit Working Papers
instances of non-compliance on non-compliances to
the: establish the effects and
develop appropriate audit
a. validity of the designation of
recommendations.
the BAC members/Chairman/
Vice-Chairman;
b. validity of the actions of the

BAC including the validity of
the resulting contract;
c. validity of any payment to be
made on the basis of the
contract;
d. etc.
and make appropriate audit
recommendations
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Prepared by:
Commission on Audit
the Answer
2. To verify the causes of Analyze the instances of Appropriate Audit Working Papers
instances of non-compliance and non-compliances to
make appropriate audit establish the cause(s) and
recommendations
recommendations.
3. To communicate the results of Prepare the appropriate
the audit with management audit/ validation document Audit Observation Memorandum (AOM), if
reflecting the results of applicable
COA Circular No. 2009-006 dated the audit/validation and
September 15, 2009 re- Prescribing the transmit to management
Use of the Rules and Regulations on
Settlement of Accounts
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Prepared by:
Commission on Audit
BIDS AND AWARDS COMMITTEEs SECRETARIAT
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Prepared by:
Commission on Audit
BASIC ELEMENT BAC SECRETARIAT
1. To verify the existence of the Bids and Awards Committee (BAC) Secretariat
2. To verify if the BAC Secretariat was constituted as required by law/regulations
3. To verify if the designated Head of the BAC Secretariat is qualified
List of documents needed (those applicable to the procurements subject of audit for the audit period):
1. Appointment of the Head of the Procuring Entity (HOPE), if an individual;

2. Office Order of or the GOCC/GFI Board Resolution designating/authorizing a specific official to act on
his/her/their behalf;
3. Office Orders creating the BAC Secretariat;
4. Office Order designating the Head of the BAC Secretariat;
5. Office Orders designating the alternate members of the BAC;
6. Plantilla/Organizational Chart of the procuring entity;
7. Work History and evidences of training on procurement of the Head of the BAC Secretariat;
8. Others as appropriate based on the audit sub-objective and audit activity.
Suggested Audit Working Paper

Audit Sub-objective
Audit Activities Particulars
Audit Criteria
Audit Question Yes No of the
Answer
1.To verify if the procuring 1. Compare the Office Order Was the BAC
entitys Bids and Awards creating the BAC Secretariat Secretariat
Committee (BAC) as follows: constituted by the
Head of the
Secretariat was constituted
a. Name and position of the Procuring Entity?
by the Head of the
signatory vs. the name
Procuring Entity and position of the HOPE
per his/her/their
Implementing Rules and appointment(s);
Regulations (IRR) of RA 9184, as
amended on September 2, 2009: b. In NGAs, constitutional
14.1 The HOPE shall create a commissions or offices,
Secretariat which will serve as the and branches of
main support unit of the BAC. An government; and in
existing organic office within the GOCCs, GFIs, and SUCs,
procuring entity may also be if the HOPE is not the
designated to serve as Secretariat. signatory,
However, to strengthen and
promote the professionalization of Name and position of the
the organizations procuring unit, signatory vs. the name
the HOPE may create procurement and position of the duly
units that may serve concurrently authorized official per
as BAC Secretariat in accordance Office Order or Board
with the guidelines issued by the Resolution designating
DBM him/her.
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Prepared by:
Commission on Audit
Audit Sub-objective
Audit Criteria
Answer
2. To verify if the BAC 2. Identify the method of Was the BAC
Secretariat was created: creation and the functions of Secretariat created:
a. as a Secretariat to serve the BAC Secretariat from the
Office Order and compare a. as a Secretariat
as the main support unit
with the requirements of to serve as the
of the BAC,
regulations. main support
b. by designating an unit of the BAC?
existing organic office
within the procuring b. by designating an
entity, existing organic
c. or by creating a office within the
procurement unit to procuring entity?
serve concurrently as
OR
BAC Secretariat
c. by creating a
in accordance with the procurement unit
guidelines issued by the to serve
DBM concurrently as
BAC Secretariat
Implementing Rules and in accordance
Regulations (IRR) of RA 9184, as with the
amended on September 2, 2009: guidelines issued
by the DBM?
14.1 The HOPE shall create a
Secretariat which will serve as the
main support unit of the BAC. An
existing organic office within the
procuring entity may also be
designated to serve as Secretariat.
However, to strengthen and
promote the professionalization of
the organizations procuring unit,
the HOPE may create procurement
units that may serve concurrently
as BAC Secretariat in accordance
with the guidelines issued by the
DBM
NOTE: The guidelines available

are those in Budget Circular No.
2007 -3 dated November 29,
2007, Budget Circular No.
2004-5A dated October 7, 2005
and Budget Circular No. 2004-5
dated March 23, 2004 on the
Grant of honoraria to
Government Personnel Involved
in Government Procurement.
3. To verify if the Head of 3. In the head office of the Was the Head of the
the BAC Secretariat met the Procuring Entity: BAC Secretariat at
following qualifications: least a fifth ranking
Compare the rank and official in the head
a. at least a fifth ranking
status of the Head of the office?
permanent employee or, BAC Secretariat per
if not available, a Plantilla of the Procuring If a 5th ranking
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Prepared by:
Commission on Audit
Audit Sub-objective
Audit Criteria
Answer
permanent official of the Entity with the required official is not
next lower rank; at least 5th rank (or if not available, was the
b. at least a third ranking available, a next lower Head of the BAC
rank) and permanent Secretariat at least
permanent employee in
status of the next lower
bureaus, regional offices
rank official in the
and sub-regional/ district head office?
offices, or if not Was the Head of the
available, a permanent BAC Secretariat a
employee of the next permanent official in
lower rank; the head office?
c. possesses integrity; 4. In bureaus, regional
d. possesses procurement offices and sub-regional/
proficiency district offices of the
Procuring Entity:
Implementing Rules and
Regulations (IRR) of RA 9184, as Compare the rank and Was the Head of the
amended on September 2, 2009: status of the Head of the BAC Secretariat at
14.2 The head of the Secretariat in BAC Secretariat per least a 3rd ranking
central offices shall be at least a Plantilla of the official in bureaus,
fifth ranking permanent organizational unit regional offices and
employee or, if not available, a concerned of the sub-regional/ district
permanent official of the next Procuring Entity with the offices?
lower rank; or shall be at least a required at least 3rd rank
third ranking permanent (or if not available, a next If a 3rd ranking
employee in bureaus, regional lower rank) and official is not
offices and sub-regional/ district permanent status available, was the
offices, or if not available, a Head of the BAC
permanent employee of the Secretariat at least
next lower rank. In addition to of the next lower
integrity, heads of Procuring rank official in the
Entities shall consider bureaus, regional
procurement proficiency as a offices and sub-
factor in designating the head of regional/ district
the Secretariat and Procurement offices?
Unit
Was the Head of the
BAC Secretariat a
permanent official in
the bureaus,
regional offices and
sub-regional/ district
offices?
5. Identify the criteria / Did the procuring

method adopted by the entity consider
procuring entity in integrity as a factor
considering integrity as in designating the
a factor in designating Head of the BAC
the Head of the BAC Secretariat?
Secretariat.
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Prepared by:
Commission on Audit
Audit Sub-objective
Audit Criteria
Answer
6. From the Work History Did the Head of the
and training documents BAC Secretariat
of the Head of the BAC possess
Secretariat verify if procurement
he/she has procurement proficiency?
proficiency.

instances of non- non-compliances to establish
compliance and make the effects and develop
appropriate audit
appropriate audit
recommendations.
recommendations
instances of non- non-compliances to establish
compliance and make the cause(s) and develop
appropriate audit
appropriate audit
recommendations.
recommendations
3.To communicate the Prepare the appropriate
results of the audit with audit/ validation document Audit Observation Memorandum (AOM), if
management reflecting the results of the applicable
audit/validation and transmit
to management
COA Circular No. 2009-006 dated
September 15, 2009 re-
Prescribing the Use of the Rules
and Regulations on Settlement of
Accounts
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Prepared by:
Commission on Audit
ANNUAL PROCUREMENT PLAN

(APP)
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Prepared by:
Commission on Audit
BASIC ELEMENT - ANNUAL PROCUREMENT PLAN (APP)
1. To verify the existence of an approved Annual Procurement Plan (APP) and supporting
Project Procurement Management Plans (PPMPs)
2. To verify the completeness of the required information in the APP
List of Documents needed:

1. Budget approved by the HOPE (could be the Budget Proposal approved by the HOPE if the
GAA, corporate budget or budget ordinance has not yet become final);
2. Approved APP with supporting PPMPs based on the final budget per GAA, corporate
budget, or budget ordinance (could be the initial approved APP based on the approved
budget proposal when the budget has not yet become final);
3. Copy of the report on the review of the PPMPs conducted by the BAC Secretariat
pertaining to the finalization of the modes of procurement under the APP;
4. Relevant portions of the GAA (national government) or corporate budget (GOCCs & GFIs)
or budget ordinance (LGUs);
5. Appointment document of the HOPE;
6. Office order designating the official to act on behalf of the HOPE, if applicable;
7. Organizational Chart/Plantilla or other document with information on the rank of the
designated official;
8. Approved updated APP with supporting PPMPs;
9. Updated budget approved by the HOPE or the designated second-ranking official;
10. Authority for the supplemental/updated budget (appropriation document for the
supplemental appropriation, supplemental or updated corporate budget, supplemental or
updated budget resolution).

the Answer
1. To verify if the 1. Upon approval of the Does the entity
procuring entity has an budget proposal by the have a proposed
Annual Procurement Plan HOPE, obtain a copy of APP?
the proposed APP from
(APP)
the BAC Secretariat.
OR
Regulations (IRR) of RA 9184,
as amended on September 2,
When the GAA, Does the entity
2009:
corporate budget, or have an approved
7.3.2. The end-user units appropriation ordinance, APP?
shall prepare their respective as the case may be,
PPMPs becomes final, obtain a
7.3.4. budget office shall copy of the approved APP
furnish a copy of the from the BAC Secretariat.
procuring entitys budget
proposal as well as the
corresponding PPMPs to the
BAC Secretariat for its review
and consolidation into the
proposed APP
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the Answer
7.3.5. end-user units shall
revise and adjust the PPMP to
reflect the budgetary
allocation for their respective
PAPs. The revised PPMPs shall
be submitted to the BAC
through its Secretariat for the
finalization of the modes of
procurement under the
proposed APP
The APP shall then be
approved in accordance with
Sec 7.2 of this IRR.
2. To verify if the APP is 2. Compare the name, Is the APP

approved by the HOPE or position, and designation approved by the
by a second-ranking of the person who HOPE or second-
approved the APP with the ranking official
official designated by the
relevant data in the designated by the
HOPE to act on his behalf
appointment document of HOPE to act on his
the HOPE. behalf?
Regulations (IRR) of RA 9184, 2.1. If the signatory is not
as amended on September 2, the HOPE, compare the
2009: name, position, and
7.2. The APP shall bear the designation of the person
approval of the HOPE or who approved the APP
second ranking official with the relevant data in
designated by the HOPE to the office order
act on his behalf, and must designating the official to
be consistent with its duly act on behalf of the HOPE.
approved yearly budget
2.2. Compare the rank of
the designated official
with the second-in-rank
per Organizational
Structure / Plantilla of the
procuring entity.
3. To verify if the APP 3. From the APP, look for Does the APP
contains the following the following information: contain the
information: following
a. name of the information:
a. name of the procurement program/
procurement project; a. name of the
b. project management procurement
program/ project;
office or end-user unit; program/ project?
b. project management
c. general description of
office or end-user the procurement;
unit; d. procurement method to b. project
c. general description of be adopted; management office
the procurement; e. time schedule for each or end-user unit?
d. procurement method procurement activity;
to be adopted; f. source of fund;
e. time schedule for g. approved budget for c. general
the contract. description of the
each procurement
procurement?
activity;
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Prepared by:
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the Answer
f. source of fund; d. procurement
g. approved budget for method to be
the contract. adopted?
GPPB Circular 1-2009 dated e. time schedule

20 January 2009: for each
procurement
3.2. Annual Procurement activity?
Plan (APP) the requisite
document that the agency
must prepare to reflect the f. source of fund?
entire procurement activity
(i.e., goods, services, civil
works to be procured) that g. approved
it plans to undertake within budget for the
the calendar year. This contract?
document contains the
following information:
3.2.1. Name of the
procurement
program/project;
3.2.2. Project
management office or
end-user unit;
3.2.3. General description
of the procurement;
3.2.4. Procurement
method to be adopted;
3.2.5. Time schedule for
each procurement
activity;
3.2.6. Source of fund; and
3.2.7. Approved Budget
for the Contract.
4. To verify if the APP is 4. Upon approval of the Is the proposed

supported by PPMPs budget proposal by the APP supported by
prepared by the HOPE, obtain from the PPMPs prepared by
BAC Secretariat a copy the respective end-
respective end-user units
each of the PPMPs which user units?
it reviewed and
consolidated into the
proposed APP.
2009:
Also obtain a copy of
7.3.2. The end-user units the report on the review
shall prepare their respective of the PPMPs conducted
PPMPs by the BAC Secretariat.
7.3.4. budget office shall
furnish a copy of the
procuring entitys budget OR
corresponding PPMPs to the When the GAA, Is the approved
BAC Secretariat for its review corporate budget, or APP supported by
and consolidation into the appropriation ordinance, adjusted PPMPs
proposed APP as the case may be, adjusted by end-
7.3.5. end-user units shall becomes final, obtain from user units to reflect
the BAC Secretariat a copy the final budget?
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the Answer
revise and adjust the PPMP to each of the PPMPs
reflect the budgetary adjusted by the end-user
allocation for their respective units which it consolidated
PAPs. The revised PPMPs shall into the approved APP.
through its Secretariat for the Also obtain a copy of
finalization of the modes of the report on the review
procurement under the of the PPMPs conducted
proposed APP by the BAC Secretariat.
5. To verify if the items in 5. Compare the items in Are the items in

the approved APP were the approved APP with the the approved APP
included in the PPMPs items in the PPMPs. included in the
PPMPs?
Identify items which do
not match.
2009:
7.3.2. The end-user units

shall prepare their respective
PPMPs
7.3.4. budget office shall
furnish a copy of the
procuring entitys budget
corresponding PPMPs to the
BAC Secretariat for its review
and consolidation into the
proposed APP
7.3.5. end-user units shall
revise and adjust the PPMP to
reflect the budgetary
allocation for their respective
PAPs. The revised PPMPs shall
through its Secretariat for the
finalization of the modes of
procurement under the
proposed APP
6. To verify if the APP 6. Compare the items and Does the APP
matches the budget per budgets in the GAA, match the budget
GAA, corporate budget, corporate budget, per GAA, corporate
appropriation ordinance, budget,
appropriation ordinance,
as the case may be, with appropriation
as the case may be
the items and amounts in ordinance, as the
the approved APP. case may be?
2009:
7.1. All procurement shall be
within the approved budget of
the procuring entity and
should be meticulously and
judiciously planned by the
procuring entity.
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the Answer
7.2. No procurement shall be
undertaken unless it is in
accordance with the approved
APP of the procuring entity.

instances of non- non-compliances to
compliance on the: establish the effects and
recommendations.
a. validity of the
procurement activities
and outputs including
the validity of the
resulting contract;
b. validity of any
payment to be made
on the basis of the
contract;
c. etc.
and develop appropriate
audit recommendations
compliance and develop establish the cause(s) and
appropriate audit
recommendations.
recommendations
3. To communicate the Prepare the appropriate

results of the audit with audit/ validation document Audit Observation Memorandum (AOM), if applicable
the auditees reflecting the results of
the audit/validation and
Management
transmit to Management
COA Circular No. 2009-006
dated September 15, 2009 re-
Prescribing the Use of the
Rules and Regulations on
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Prepared by:
Commission on Audit
BIDS AND AWARDS COMMITTEEs

OBSERVERS
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Prepared by:
Commission on Audit
BASIC ELEMENT BAC OBSERVERS
1. To verify if the BAC established a mechanism for identifying/selecting the group

(professional organizations; non-governmental organizations) from which Observers were
invited for specific procurements
2. To verify if the BAC implemented the mechanism and established the pool of professional
organizations and non-governmental organizations from which they will select representatives
as Observers in specific procurements
List of needed documents:

1. Copy of the Policy on the mechanism for identifying/selecting the group (professional
organizations; non-governmental organizations) from which Observers were invited
for specific procurements;
2. Relevant Minutes of the BACs meetings;
3. Documentation on the creation of the pool of relevant professional organizations and
non-governmental organizations;
4. Documentation on selection of representatives of each organization.

the Answer
1.To verify if the BAC 1. From the BAC Did the BAC establish a
established and is Secretariat, obtain a copy mechanism for
implementing a of the policy on the identifying/selecting the
mechanism for group (professional
mechanism for
identifying/selecting the organizations; non-
identifying/selecting the group (professional governmental
group (professional organizations; non- organizations) from
organizations; non- governmental which Observers were
governmental organizations) from which invited for specific
organizations) from which Observers were invited for procurements?
Observers were invited for specific procurements.
specific procurements
2. Go through the policy Did the policy of the
Implementing Rules and and compare its provisions procuring entity on the
Regulations (IRR) of RA 9184, with the requirements of selection of Observers
the IRR of RA No. 9184 conform with the
pertaining to the selection requirements of the IRR
2009: of Observers for specific of RA No. 9184
13.1. To enhance the procurements. pertaining to the
transparency of the process, selection of Observers
the BAC shall, in all stages of for specific
the procurement process, procurements as
invite, in addition to the follows:
representative of the COA, at
least two (2) observers, who a. One Observer from
shall not have the right to the Commission on
vote, to sit in its proceedings Audit?
where:
a) At least one (1) shall come b. One Observer from a
from a duly recognized duly recognized private
private group in a sector or group in a sector or
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Prepared by:
Commission on Audit
the Answer
discipline relevant to the discipline relevant to
procurement at hand, for the procurement at
example: hand?
i) For infrastructure projects,
national associations of c. One Observer from a
constructors duly non-governmental
recognized by the organization?
Construction Industry
Authority of the Philippines
(CIAP), such as, but not d. The organization is
limited to the following: registered with the SEC
(1) Philippine Constructors or with the Cooperative
Association, Inc.; Development Authority
(2) National Constructors (CDA)?
Association of the
Philippines, Inc.; and
(3) Philippine Institute of e. The organizations
Civil Engineers (PICE). representative has
knowledge, experience
ii) For goods, a specific
or expertise in
relevant chamber-member of
procurement or in the
the Philippine Chamber of
subject matter of the
Commerce and Industry.
contract to be bid?
iii) For consulting services, a
project-related professional
organization accredited or f. The organization
duly recognized by the and/or its
Professional Regulation representative has no
Commission or the Supreme actual or potential
Court, such as, but not limited conflict of interest in the
to: contract to be bid?
(1) PICE;
(2) Philippine Institute of
Certified Public g. Adopted other
Accountants (PICPA); relevant criteria
and determined by the BAC?
(3) Confederation of Filipino
Consulting Organizations; 3. Obtain and evaluate Did the BAC implement
and documents from the BAC the procuring entitys
Secretariat evidencing mechanism for
b) The other observer shall implementation of the identifying/selecting
come from a non-government policy (e.g. relevant Observers for specific
organization (NGO). Minutes of the BACs procurements?
meetings, documentation
13.2. The observers shall come of the pool of relevant
from an organization duly professional organizations
registered with the Securities and non-governmental
and Exchange Commission organizations, invitation
(SEC) or the Cooperative letters).
Development Authority (CDA),
and should meet the following
criteria:
a) Knowledge, experience or
expertise in procurement or in
the subject matter of the
contract to be bid;
b) Absence of actual or potential
conflict of interest in the
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Prepared by:
Commission on Audit
the Answer
contract to be bid; and
c) Any other relevant criteria
that may be determined by
the BAC.

recommendations.
a. validity of the
the validity of the
resulting contract;
b. validity of any payment
to be made on the basis
of the contract;
c. etc.
appropriate audit
recommendations.
recommendations

the auditees Management reflecting the results of
and Regulations on Settlement
of Accounts
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Prepared by:
Commission on Audit
BIDS AND AWARDS COMMITTEEs

TECHNICAL WORKING GROUP
(TWG)
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Prepared by:
Commission on Audit
BASIC ELEMENT BAC Technical Working Group (TWG)
1. To verify if the BAC established a mechanism for constituting the pool of technical,
financial, and/or legal experts from which they will identify/select members of the Technical
Working Group for specific procurements
2. To verify if the BAC implemented the mechanism and established the pool of
technical, financial, and/or legal experts from which they will identify/select members of
the Technical Working Group for specific procurements
List of needed documents:

1. Copy of the policy on the mechanism for constituting the pool of technical, financial, and/or
legal experts from which the BAC will identify/select members of the Technical Working
Group for specific procurements;
2. Relevant Minutes of the BACs meetings;
3. Documentation on the creation of the pool of technical, financial, and/or legal experts from
which the BAC will identify/select members of the Technical Working Group for specific
procurements.

Audit Criteria Audit Activities Audit Question Yes No Particulars of the
Answer
1.To verify if the BAC 1. From the BAC Did the BAC establish
established and is Secretariat, obtain a copy a mechanism for
implementing a of the policy on the identifying/selecting
mechanism for members of the
mechanism for
identifying/selecting Technical Working
identifying/selecting members of the Technical Group for specific
members of the Working Group for specific procurements?
Technical Working procurements.
Group for specific
procurements 2. Obtain documents from Did the BAC
the BAC Secretariat implement the
Implementing Rules and evidencing implementation procuring entitys
Regulations (IRR) of RA of the policy (e.g. relevant mechanism for
9184, as amended on Minutes of the BACs identifying/selecting
September 2, 2009: meetings, documentation members of the
of the pool of technical, Technical Working
12.1. The BAC shall have the financial, and/or legal Group for specific
following functions: (a) (k) experts, Office Orders procurements?
perform such other related creating TWGs for specific
functions as may be procurements) and verify if
necessary, including the as a result a pool of Was a pool of
creation of a Technical technical, financial, and/or technical, financial,
Working Group (TWG) from a legal experts has been and/or legal experts
pool of technical, financial, created from which created from which
and/or legal experts to assist members of TWGs for members of TWGs for
in the procurement process, specific procurements may specific procurements
particularly in the eligibility be selected. may be selected?
screening, evaluation of bids,
and post-qualification.
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Prepared by:
Commission on Audit
Audit Criteria Audit Activities
Audit Question Yes No Particulars of the
Answer
1. To verify the effects Analyze the instances of Appropriate Audit Working Papers
of instances of non- non-compliances to
recommendations.
a. validity of the
procurement
activities and
outputs including
the validity of the
resulting contract;
b. validity of any
payment to be made
on the basis of the
contract;
c. etc.
and develop
appropriate audit
recommendations
2. To verify the causes Analyze the instances of Appropriate Audit Working Papers
of instances of non- non-compliances to
compliance and establish the cause(s) and
develop appropriate
recommendations.
audit
recommendations

results of the audit audit/ validation document Audit Observation Memorandum (AOM), if applicable
with the auditees reflecting the results of the
audit/validation and
Management
dated September 15, 2009
re- Prescribing the Use of
the Rules and Regulations
on Settlement of Accounts
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Prepared by:
Commission on Audit
CUSTOMIZED BIDDING DOCUMENTS

FOR GOODS
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Prepared by:
Commission on Audit
BASIC ELEMENT CUSTOMIZED BIDDING DOCUMENTS FOR GOODS
1. To verify if the procuring entitys customized bidding documents for goods are complete
2. To verify if the forms and contents of the procuring entitys customized bidding documents
for goods are as prescribed by the GPPB
Documents needed:
Customized Bidding Documents for Goods

the Answer
1. To verify if the procuring 1. Request for the Did the procuring
entity adopted a set of customized bidding entity adopt a set of
customized bidding documents for goods customized bidding
from the BAC Secretariat. documents for goods?
documents for goods

amended on September 2, 2009:
17.1 The bidding documents
shall be prepared by the
procuring entity following the
standard forms and manuals
prescribed by the GPPB.
6.2 Once issued by the GPPB,
the use of the Generic
Procurement Manuals (GPMs),
Philippine Bidding Documents
(PBDs), and other standard
forms shall be mandatory upon
all Procuring Entities. However,
whenever necessary, to suit the
particular needs of the procuring
entity, modifications may be
made, particularly for major and
specialized procurement, subject
to the approval of the GPPB.
NOTE: If the Procuring Entity did not adopt a set of customized bidding documents for goods, the
succeeding Audit Sub-Objectives and related Activities need not be performed and the related
Audit Questions for this element need not be answered.
2.To verify if the set of 2. Compare the set of Are the items in the
customized bidding customized bidding customized bidding
documents for goods are documents for goods with documents for goods
the Philippine Bidding complete when
complete, i.e., include the
Documents (PBDs) for compared with the
following: Procurement of Goods, items in the Philippine
a. Approved Budget for the 3rd edition, October 2009 Bidding Documents
Contract, approved by the GPPB (PBDs) for
b. Invitation to Bid per GPPB Resolution No. Procurement of
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Prepared by:
Commission on Audit
the Answer
c. Eligibility Requirements 05-2009 dated 30 Goods, 3rd edition,
d. Instructions to Bidders, September 2009 October 2009
including Scope of Bid, published by the
GPPB?
documents comprising
the bid, criteria for
eligibility, bid evaluation
methodology/criteria in
accordance with the Act,
and post-qualification, as
well as the date, time and
place of the pre-bid
conference (where
applicable), submission of
bids and opening of bids
e. Technical Drawings and
Specifications
f. Form of Bid, Price Form,
and list of goods
g. Delivery Schedule
h. Form, amount, and
validity period of bid
security
i. Form, amount, and
validity of performance
security and warranty
j. Form of Contract and
General and Special
Conditions of Contract

shall be prepared by the procuring
entity following the standard forms
and manuals prescribed by the
GPPB. The bidding documents shall
include the following:
a. Approved Budget for the
Contract
b. Invitation to Bid
c. Eligibility Requirements
d Instructions to Bidders, including
Scope of Bid, documents
comprising the bid, criteria for
accordance with the Act, and
post-qualification, as well as the
date, time and place of the pre-
bid conference (where
applicable), submission of bids
and opening of bids
e. Form of Bid, Price Form, and list
of goods and services
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Prepared by:
Commission on Audit
the Answer
f. Delivery Schedule
g. Form, amount, and validity
period of bid security
h. Form, amount, and validity of
performance security and
warranty
i. Form of Contract and General
and Special Conditions of
Contract.

(PBDs) for Procurement of
Goods, 3rd edition, October 2009
approved by the GPPB per GPPB
Resolution No. 05-2009 dated 30
September 2009
3. To verify if the form and 3. Compare the individual Did the form of the
contents of the customized documents of the Invitation to Bid in the
bidding documents for procuring entitys customized bidding
customized bidding documents for goods
goods conform with those
documents for goods with conform with the
in the Philippine Bidding
the corresponding standard form
Documents (PBDs) for documents of the prescribed by the
Procurement of Goods, 3rd Philippine Bidding GPPB?
edition, October 2009 Documents (PBDs) for
approved by the GPPB per Procurement of Goods, Did the contents of
GPPB Resolution No. 05- 3rd Edition, October 2009 the form of the
2009 dated 30 September approved by the GPPB Invitation to Bid in
2009 & with Section 21.1 of per GPPB Resolution No. the customized
05-2009 dated 30
the Revised IRR of RA No. bidding documents for
September 2009 goods conform with
9184
the contents of the
Philippine Bidding Documents Invitation to Bid
(PBDs) for Procurement of prescribed by Section
Goods, 3rd edition, October 2009 21.1 of the IRR of RA
approved by the GPPB per GPPB 9184 and the PBDs?
Resolution No. 05-2009 dated 30
September 2009 Did the form of the
Instructions to Bidders
Implementing Rules and in the customized
Regulations (IRR) of RA 9184, as bidding documents for
amended on September 3, 2009: goods conform with
21.1. The Invitation to Bid shall the standard form
provide prospective bidders the prescribed by the
following information, among PBDs?
others:
a. For the procurement of goods,
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Prepared by:
Commission on Audit
the Answer
the name of the contract to be Did the contents of
bid and a brief description of the Instructions to
the goods to be procured; Bidders in the
b. A general statement on the customized bidding
criteria to be used by the documents for goods
procuring entity for the conform with the
eligibility check, the contents of the
examination and evaluation of Instructions to Bidders
bids, post-qualification, and prescribed by the
award; PBDs?
c. The date, time and place of
the deadline for the Did the form for the
submission and receipt of the Bid Data Sheet in the
eligibility requirements, the customized bidding
pre-bid conference, if any, the documents for goods
submission and receipt of bids, conform with the
and the opening of bids; standard form
d. ABC to be bid; prescribed by the
e. The source of funding; PBDs?
f. The period of availability of the
Bidding Documents, the place Did the contents of
where the Bidding Documents the Bid Data Sheet in
may be secure, the website the customized
where the Bidding Documents bidding documents for
may be downloaded, and, goods conform with
where applicable, the price of the contents of the Bid
the Bidding Documents; Data Sheet prescribed
g. The contract duration or by the PBDs?
delivery schedule; Did the form of the
h. The name, address, telephone General Conditions of
number, facsimile number, e- Contract in the
mail and website addresses of customized bidding
the concerned procuring documents for goods
entity, as well as its conform with the
designated contact person; standard form
and prescribed by the
i. Such other necessary PBDs?
information deemed relevant
by the procuring entity. Did the contents of
the form of General
in the customized
bidding documents for
goods conform with
the contents of the
General Conditions of
Contract form
prescribed by the
PBDs?
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Prepared by:
Commission on Audit
the Answer
Did the form for the
Special Conditions of
Contract in the
customized bidding
documents for goods
conform with the
standard form
prescribed by the
PBDs?
Did the contents of

the form for the
Contract in the
customized bidding
documents for goods
conform with the
contents of the Special
prescribed by the
PBDs?
Did the form of the

Schedule of
Requirements in the
customized bidding
documents for goods
conform with the
standard form
prescribed by the
PBDs?
Did the contents of

the form for the
Schedule of
Requirements in the
customized bidding
documents for goods
conform with the
contents of the
Schedule of
Requirements
prescribed by the
PBDs?

Technical
Specifications in the
customized bidding
documents for goods
conform with the
standard form
prescribed by the
PBDs?
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Prepared by:
Commission on Audit
the Answer
Did the contents of
the form for Technical
Specifications in the
customized bidding
documents for goods
conform with the
contents of the
Technical
Specifications
prescribed by the
PBDs?
Did the Bid Form in

the customized
goods conform with
the standard forms
prescribed by the
PBDs?
Did the contents of

the Bid Form in the
customized bidding
documents for goods
conform with the
contents of the Bid
Form prescribed by
the PBDs?
Did the Contract

Agreement Form in
the customized
goods conform with
the standard form
prescribed by the
PBDs?
Did the contents of

the Contract
Agreement Form in
the customized
goods conform with
the contents of the
Contract Agreement
Form prescribed by
the PBDs?

Omnibus Sworn
Statement in the
customized bidding
documents for goods
conform with the
standard forms
prescribed by the
PBDs?
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Prepared by:
Commission on Audit
the Answer
Did the contents of
the form for the
Omnibus Sworn
Statement in the
customized bidding
documents for goods
conform with the
contents of the
Omnibus Sworn
Statement prescribed
by the PBDs?
Did the Bank

Guarantee Form for
Advance Payment in
the customized
goods conform with
the standard form
prescribed by the
PBDs?
Did the contents of

the Bank Guarantee
Form for Advance
Payment in the
customized bidding
documents for goods
conform with the
contents of the Bank
Guarantee Form for
Advance Payment
prescribed by the
PBDs?
recommendations.
a. validity of the
and outputs including the
validity of the resulting
contract;
of the contract;
c. etc.
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Prepared by:
Commission on Audit
the Answer
appropriate audit
recommendations.
recommendations

results of the audit with the audit/ validation Audit Observation Memorandum (AOM), if applicable
auditees Management document reflecting the
results of the
Accounts
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Prepared by:
Commission on Audit
CUSTOMIZED BIDDING
DOCUMENTS FOR
INFRASTRUCTURE PROJECTS
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Prepared by:
Commission on Audit
BASIC ELEMENT CUSTOMIZED BIDDING DOCUMENTS
FOR INFRASTRUCTURE PROJECTS
1. To verify if the Procuring Entitys customized bidding documents for infrastructure

projects are complete
2. To verify if the forms and contents of the Procuring Entitys customized bidding
documents for infrastructure projects are as prescribed by the GPPB
Documents needed:
Customized Bidding Documents for Infrastructure Projects

the Answer
1. To verify if the procuring 1. Request for the Did the procuring
entity adopted a set of customized bidding entity adopt a set of
customized bidding documents for customized bidding
infrastructure projects documents for
documents for
from the BAC Secretariat infrastructure
infrastructure projects
projects?

NOTE: If the Procuring Entity did not adopt a set of customized bidding documents for infrastructure
projects, the succeeding Audit Sub-Objectives and related Activities need not be performed and
the related Audit Questions for this element need not be answered.
2.To verify if the set of 2. Compare the set of Were the items in the
documents for documents with the documents complete
infrastructure projects are Philippine Bidding compared with the
Documents (PBDs) for items in the Philippine
complete, i.e., include the
Procurement of Bidding Documents
following: Infrastructure Projects, (PBDs) for
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Prepared by:
Commission on Audit
the Answer
a. Approved Budget for the 3rd edition, October 2009 Procurement of
Contract, published by the GPPB Infrastructure
b. Invitation to Bid Projects, 3rd edition,
c. Eligibility Requirements October 2009
published by the
d. Instructions to Bidders, GPPB?
including Scope of Bid,
well as the date, time and
conference (where
bids and opening of bids
e. Technical Drawings and
Specifications
f. Form of Bid, Price Form,
and list of goods
security
General and Special

shall be prepared by the procuring
entity following the standard forms
and manuals prescribed by the
GPPB. The bidding documents shall
include the following:
Contract
b. Invitation to Bid
d Instructions to Bidders, including
Scope of Bid, documents
comprising the bid, criteria for
post-qualification, as well as the
date, time and place of the pre-
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Prepared by:
Commission on Audit
the Answer
applicable), submission of bids
and opening of bids
e. Form of Bid, Price Form, and list
of goods and services
warranty
Contract.

Infrastructure Projects, 3rd
edition, October 2009 published
by the GPPB
3. To verify if the form and 3. Compare the individual Did the form of the
contents of the customized documents of the Invitation to Bid in
bidding documents for procuring entitys the customized
customized bidding bidding documents for
documents for infrastructure projects
conform with those in the infrastructure projects conform with the
Philippine Bidding with the corresponding standard form
Documents (PBDs) for documents of the prescribed by the
Procurement of Goods, 3rd Philippine Bidding PBDs?
edition, October 2009 Documents (PBDs) for
approved by the GPPB per Procurement of Did the contents of
GPPB Resolution No. 05- Infrastructure Projects, the Invitation to Bid
2009 dated 30 September 3rd edition, October 2009 in the customized
published by the GPPB bidding documents for
2009 & with Section 21.1 of
the Revised IRR of RA No.
conform with the
9184 contents of the
Invitation to Bid
Philippine Bidding Documents prescribed by Section
(PBDs) for Procurement of 21.1 of the IRR of RA
Infrastructure Projects, 3rd 9184 and the PBDs?
edition, October 2009 approved
by the GPPB per GPPB Resolution
Did the form of the
No. 05-2009 dated 30 September
2009
in the customized
Implementing Rules and infrastructure projects
Regulations (IRR) of RA 9184, as conform with the
amended on September 2, 2009: standard form
21.1. The Invitation to Bid prescribed by the
shall provide prospective GPPB?
bidders the following
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information, among others: Did the contents of
a. For the procurement of the form for the
Infrastructure projects, the Instructions to Bidders
name and location of the in the customized
contract to be bid, the project bidding documents for
background and other relevant infrastructure projects
information regarding the conform with the
proposed contract works, contents of the
including a brief description of Instructions to Bidders
the type, size, major items, prescribed by the
and other important or PBDs?
relevant features of the works;
b. A general statement on the Did the form for the
criteria to be used by the Bid Data Sheet in the
procuring entity for the customized bidding
eligibility check, the documents for
examination and evaluation of infrastructure projects
bids, post-qualification, and conform with the
award; standard form
c. The date, time and place of prescribed by the
the deadline for the PBDs?
submission and receipt of the
eligibility requirements, the Did the contents of
pre-bid conference, if any, the the form for the Bid
submission and receipt of bids, Data Sheet in the
and the opening of bids; customized bidding
d. ABC to be bid; documents for
e. The source of funding; infrastructure projects
f. The period of availability of the conform with the
Bidding Documents, the place contents of the Bid
where the Bidding Documents Data Sheet prescribed
may be secure, the website by the PBDs?
where the Bidding Documents
may be downloaded, and, Did the form for the
where applicable, the price of General Conditions of
the Bidding Documents; Contract in the
g. The contract duration or customized bidding
delivery schedule; documents for
h. The name, address, telephone infrastructure projects
number, facsimile number, e- conform with the
mail and website addresses of standard form
the concerned procuring prescribed by the
entity, as well as its PBDs?
designated contact person;
and Did the contents of
i. Such other necessary the form for the
information deemed relevant General Conditions of
by the procuring entity. Contract in the
customized bidding
documents for
conform with the
contents of the
Contract prescribed by
the PBDs?
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the Answer
Contract in the
customized bidding
documents for
conform with the
standard form
prescribed by the
PBDs?
Did the contents of

the form for the
Contract in the
customized bidding
documents for
conform with the
contents of the form
for the Special
prescribed by the
PBDs?

Bill of Quantities in the
customized bidding
documents for
conform with the
standard form
prescribed by the
PBDs?
Did the contents of

the form for the Bill of
Quantities in the
customized bidding
documents for
conform with the
contents of the Bill of
Quantities prescribed
by the PBDs?
Did the Bid Form in

the customized
conform with the
standard form
prescribed by the
PBDs?
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the Answer
Did the contents of
the Bid Form in the
customized bidding
documents for
conform with the
contents of the Bid
Form prescribed by
the PBDs?
Did the Form of

Contract Agreement in
the customized
conform with the
standard forms
prescribed by the
PBDs?
Did the contents of

the Form of Contract
Agreement in the
customized bidding
documents for
conform with the
contents of the Form
of Contract Agreement
prescribed by the
PBDs?
Did the form of the

Omnibus Sworn
Statement in the
customized bidding
documents for
conform with the
standard form
prescribed by the
PBDs?
Did the contents of

the form for the
Omnibus Sworn
Statement in the
customized bidding
documents for
conform with the
contents of the
Omnibus Sworn
Statement prescribed
by the PBDs?
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the Answer
Notes on Specifications Did the customized
in Section VI. Specifications bidding documents for
of the Philippine Bidding infrastructure projects
of the procuring entity
Documents (PBDs) for
contain a Section on
Procurement of Specifications with
Infrastructure Projects, 3rd Notes similar to those
edition, October 2009 in the PBDs?
published by the GPPB,
Did the customized
which are meant to guide bidding documents for
the procuring entity in infrastructure projects
developing specifications of the procuring entity
for individual procurements. contain a Section on
Drawings with Notes
The statements: Insert similar to those in the
here a list of Drawings. PBDs?
The actual Drawings,
including site plans, should
be attached to this section
or annexed in a separate
folder. Are in Section VII.
Drawings of the Philippine
Bidding Documents (PBDs)
for Procurement of
edition, October 2009
published by the GPPB

recommendations.
a. validity of the
and outputs including the
contract;
of the contract;
c. etc.
appropriate audit
recommendations.
recommendations
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the Answer
results of the
Accounts
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CUSTOMIZED BIDDING DOCUMENTS

FOR CONSULTING SERVICES
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BASIC ELEMENT CUSTOMIZED BIDDING DOCUMENTS FOR
CONSULTING SERVICES
1. To verify if the Procuring Entitys customized bidding documents for consulting services
are complete
2. To verify if the forms and contents of the Procuring Entitys customized bidding
documents for consulting services are as prescribed by the GPPB
Documents needed:
Customized Bidding Documents for Consulting Services

the Answer
1. To verify if the 1. Request for the Did the procuring entity
procuring entity adopted customized bidding adopt a set of customized
a set of customized documents for consulting bidding documents for
services from the BAC consulting services?
Secretariat.
consulting services

2009:
forms shall be mandatory
upon all Procuring Entities.
However, whenever
necessary, to suit the
particular needs of the
procuring entity, modifications
may be made, particularly for
major and specialized
procurement, subject to the
approval of the GPPB.
NOTE: If the Procuring Entity did not adopt a set of customized bidding documents for infrastructure
projects, the succeeding Audit Sub-Objectives and related Activities need not be performed and the
related Audit Questions for this element need not be answered.
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2.To verify if the set of 2. Compare the set of Were the items in the
documents for consulting documents with the documents for consulting
services are complete, Philippine Bidding services complete when
Documents (PBDs) for compared with the items
i.e., include the Procurement of in the Philippine Bidding
following: Consulting Services, 3rd Documents (PBDs) for
a. Approved Budget for edition, October 2009 Procurement of Consulting
the Contract, published by the GPPB Services, 3rd edition,
b. Request for Expression October 2009 published by
of Interest, the GPPB
c. Eligibility
Requirements
d. Instructions to
Bidders, including
Scope of Bid,
eligibility, bid
evaluation
accordance with the
Act, and post-
qualification, as well as
the date, time and
conference (where
applicable), submission
of bids and opening of
bids
e. Technical Drawings
and Specifications
f. Form of Bid, Price
Form, and list of goods
security
General and Special

2009:
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prescribed by the GPPB. The
bidding documents shall include
the following:
Contract,
b. Request for Expression of
Interest,
d Instructions to Bidders,
including Scope of Bid,
documents comprising the
bid, criteria for eligibility, bid
evaluation
post-qualification, as well as
the date, time and place of
the pre-bid conference
(where applicable),
submission of bids and
opening of bids
e. Form of Bid, Price Form, and
list of goods and services
warranty
Contract.
Philippine Bidding
Documents (PBDs) for
Procurement of Consulting
Services, 3rd edition,
October 2009 published by
the GPPB published by the
GPPB
3. To verify if the form 3. Compare the individual Did the form for the
and contents of the documents of the Request for Expression of
customized bidding procuring entitys Interest in the customized
customized bidding bidding documents for
documents for consulting
documents for consulting consulting services
services conform with
services with the conform with the standard
those in the Philippine corresponding documents form prescribed by the
Bidding Documents of the Philippine Bidding PBDs?
(PBDs) for Procurement Documents (PBDs) for
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Prepared by:
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the Answer
of Consulting Services, Procurement of Did the contents of the
3rd edition, October 2009 Consulting Services, 3rd form for the Request for
published by the GPPB edition, October 2009 Expression of Interest in
published by the GPPB the customized bidding
services conform with the
contents of the form for
Consulting Services, 3rd
the Request for Expression
of Interest prescribed by
published by the GPPB
the PBDs?
Did the form of the
Eligibility Documents in the
customized bidding
standard form prescribed
by the PBDs?
Did the contents of the

form for Eligibility
Documents in the
customized bidding
Eligibility Documents
prescribed by the PBDs?

Eligibility Data Sheet in
the customized bidding
by the PBDs?

form for the Eligibility Data
Sheet in the customized
consulting services
conform with the contents
of the form for the
Eligibility Data Sheet
Did the form for the Notice
of Eligibility and Short
Listing in the customized
consulting services
conform with the standard
form prescribed by the
PBDs?
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the Answer
form for Notice of Eligibility
and Short Listing in the
customized bidding
contents of the Notice of
Eligibility and Short Listing

Instructions to Bidders in
by the PBDs?

form for the Instructions to
Bidders in the customized
consulting services
of the Instructions to
Bidders prescribed by the
PBDs?
Did the form of the Bid

Data Sheet in the
customized bidding
by the PBDs?

form for the Bid Data
Sheet in the customized
consulting services
of the Bid Data Sheet

Contract in the customized
consulting services
PBDs?
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the Answer
form for the General
Conditions of Contract in
the General Conditions of
Contract prescribed by the
PBDs?

Contract in the customized
consulting services
PBDs?

form for the Special
Conditions of Contract in
the Special Conditions of
Contract prescribed by the
PBDs?

Submission Form in the
customized bidding
by the PBDs?

customized bidding
contents of the Eligibility
Documents Submission
Form prescribed by the
PBDs?
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the Answer
Did the Technical Proposal
customized bidding
by the PBDs?

Technical Proposal
customized bidding
contents of the Technical
Proposal Submission Form

Consultants Reference in
by the PBDs?

form for the Consultants
Reference in the
customized bidding
the Consultants Reference

Comments and
Suggestions of Consultant
on the Terms of Reference
and on Data, Services, and
Facilities to be Provided by
the Procuring in the
customized bidding
by the PBDs?
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Commission on Audit
the Answer
Did the contents of form
for the Comments and
Suggestions of Consultant
on the Terms of Reference
and on Data, Services, and
Facilities to be Provided by
the Procuring in the
customized bidding
contents of the Comments
and Suggestions of
Consultant on the Terms
of Reference and on Data,
Services, and Facilities to
be Provided by the
Procuring form
Did the customized bidding

services have a form for
the Description of the
Methodology and Work
Plan for Performing the
Project as required by the
PBDs?
Did the form for Team
Composition and Task
Projects in the
customized bidding
by the PBDs?

form for the Team
Projects in the customized
consulting services
of the form for theTeam
Projects prescribed by
the PBDs?
Did the Format of

Curriculum Vitae (CV) for
Proposed Professional Staff
in the customized bidding
by the PBDs?
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the Answer
Format of Curriculum Vitae
(CV) for Proposed
Professional Staff in the
customized bidding
contents of the Format of
Curriculum Vitae (CV) for
Proposed Professional Staff
Did the form for the Time

Schedule for Professional
Personnel in the
customized bidding
by the PBDs?

form for theTime Schedule
for Professional Personnel
the Time Schedule for
Professional Personnel

Activity (Work) Schedule in
by the PBDs?

form for the Activity
(Work) Schedule in the
customized bidding
the Activity (Work)
Schedule prescribed by
the PBDs?

Financial Proposal
Submission in the
customized bidding
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the Answer
by the PBDs?

form for the Financial
Proposal Submission in the
customized bidding
the Financial Proposal
Submission prescribed by
the PBDs?
Did the form of the

Summary of Costs in the
customized bidding
by the PBDs?

form for the Summary of
Costs in the customized
consulting services
of the form for the
Summary of Costs

Breakdown of Price per
Activity in the customized
consulting services
PBDs?

form for the Breakdown of
Price per Activity form in
the Breakdown of Price per
Activity prescribed by the
PBDs?
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Breakdown of
Remuneration per Activity
by the PBDs?

the Breakdown of

Reimbursables per Activity
by the PBDs?

form for Reimbursables
per Activity in the
customized bidding
Reimbursables per Activity

Miscellaneous Expenses in
by the PBDs?
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Commission on Audit
the Answer
form for the Miscellaneous
Expenses in the
customized bidding
the Miscellaneous
Expenses form prescribed
by the PBDs?
Did the Form of Contract

Agreement in the
customized bidding
by the PBDs?

Form of Contract
Agreement in the
customized bidding
contents of the Form of
Contract Agreement
Did the Omnibus Sworn

Statement form in the
customized bidding
by the PBDs?

Omnibus Sworn Statement
form in the customized
consulting services
of the Omnibus Sworn
Statement form prescribed
by the PBDs?
Did the Appendices form in

by the PBDs?
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the Answer
form for the Appendices in
the Appendices prescribed
by the PBDs?

Breakdown of Agreed
Fixed Rate in the
customized bidding
by the PBDs?

Agreed Fixed Rate in the
customized bidding
the Breakdown of Agreed
Fixed Rate prescribed by
the PBDs?
The contents of the Terms Did the customized bidding

of Reference are as follows: documents for consulting
a. Background, services of the procuring
b. Objectives, entity contain a Section on
c. Scope of the Services, Terms of Reference with
d. Training (when contents similar to those in
appropriate), the PBDs?
e. Reports and Time
Schedule,
f. Data. Local Services,
Personnel, and
Facilities to be
provided by the
Procuring Entity
per Section VI. Terms of
Reference of the Philippine
Bidding Documents (PBDs)
for Procurement of
Consulting Services, 3rd
published by the GPPB,
which are meant to guide
the procuring entity in
developing Terms of
Reference for individual
procurements.
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the Answer
recommendations.
a. validity of the
the validity of the
resulting contract;
b. validity of any
payment to be made
on the basis of the
contract;
c. etc.
appropriate audit
recommendations.
recommendations

results of the audit with audit/ validation Audit Observation Memorandum (AOM), if applicable
the auditees document reflecting the
results of the
Management
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Commission on Audit
On the Procurement Procedures:
COMPETITIVE / PUBLIC BIDDING

FOR THE PROCUREMENT OF
GOODS
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Prepared by:
Commission on Audit
Procurement Procedures:
COMPETITIVE / PUBLIC BIDDING FOR THE
PROCUREMENT OF GOODS
I. PREPARATORY ACTIVITY:
BIDDING DOCUMENTS
Bidding documents are documents issued by the Procuring Entity to provide prospective
bidders all the necessary information that they need to prepare their bids.
A. AUDIT OBJECTIVE:
To verify if the Bidding Documents followed the standard forms and manuals prescribed
by the Government Procurement Policy Board (GPPB)
Documents needed for evaluation:

1. The procuring entitys Customized Bidding Documents for Goods;
2. Bidding Documents for the specific procurement.

Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
1. To verify if the Bidding 1. If the procuring entity Are the Bidding
Documents for the specific adopted customized Bidding Documents/
procurement include the Documents and the results Information complete:
information and are of the earlier validation of
a. Approved Budget
according to the forms this element showed that for the Contract?
included in the Customized these are compliant with
Bidding Documents the Philippine Bidding b. Invitation to Bid?
approved by the GPPB or Documents for the
the Philippine Bidding Procurement of Goods and c. Eligibility
Documents for the Section 17.1 of the Requirements?
Procurement of Goods, 3rd Implementing Rules and
Edition (October 2009) Regulations of RA 9184, d. Instruction to
Bidders, including
issued by the GPPB and secure from the BAC
- scope of bid?
Section 17 of the Secretariat duly certified
Implementing Rules and copies of the Bidding - documents
Regulations of RA 9184 as Documents for the specific comprising the bid?
amended on September 2, procurement and compare
2009: these with the customized - criteria for
a. Approved Budget for Bidding Documents of eligibility?
the Contract; the procuring entity.
b. Invitation to Bid; - bid evaluation
methodology/
c. Eligibility If the customized
criteria in
Requirements; Bidding Documents are not
accordance with
d. Instruction to Bidders, compliant, compare the the Act?
including scope of bid, procurement-specific
documents comprising Bidding Documents with - post-qualification
the bid, criteria for the Philippine Bidding methodology?
eligibility, bid Documents for the
- date of the pre-
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Commission on Audit
of the
Answer
evaluation Procurement of Goods bid conference?
methodology/criteria in issued by the GPPB.
accordance with the - time of the pre-
bid conference?
Act, and post-
qualification, as well as - Place of the pre-
the date, time and bid conference?
conference (where - Deadline for
applicable), submission submission of
of bids and opening of bids?
bids;
e. Scope of work, where - Place of
submission of
applicable;
bids?
f. Plans/Drawings and
Technical - Date of opening of
Specifications; bids?
g. Form of Bid, Price Form,
and List of Goods; - Time of opening
h. Delivery Time or of bids?
Completion Schedule;
i. Form, Amount, and - Place of opening
of bids?
Validity Period of Bid
Security; e. Scope of work,
j. Form, Amount, and where applicable?
Validity of Performance
Security and Warranty; f. Plans/Drawings and
and Technical
k. Form of Contract and Specifications?
General and Special
Conditions of Contract. f.1. Was there no
reference to brand
names?
g. Form of Bid, Price
Form, and List of
Goods?
17.1. The Bidding Documents
h. Delivery Time or
Completion
Schedule?
i. Form, Amount, and
Contract;
Validity Period of
b. Invitation to Bid;
Bid Security?
c. Eligibility Requirements;
d. Instruction to Bidders,
j. Form, Amount, and
including scope of bid,
Validity of
documents comprising the
Performance
Security and
evaluation
Warranty?
k. Form of Contract
and General and
the date, time and place of
Special Conditions
the pre-bid conference
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Prepared by:
Commission on Audit
of the
Answer
(where applicable), of Contract?
opening of bids; Were the Bidding
e. Scope of work, where Documents in the
applicable; required form:
Technical Specifications; a. Invitation to Bid?
g. Form of Bid, Price Form, and
List of Goods; b. Instructions to
h. Delivery Time or Completion Bidders?
Schedule;
i. Form, Amount, and Validity c. Bid Data Sheet?
Period of Bid Security;
j. Form, Amount, and Validity of d. General Condition
Performance Security and of the Contract?
Warranty; and
k. Form of Contract and General e. Special Condition of
and Special Conditions of Contract?
Contract.
f. Schedule of
Section 18. Reference to Requirements?
Brand Names
Specifications for the procurement g. Technical
of goods shall be based on Specifications?
relevant characteristics and/or
performance requirements. h. Bidding Forms?
Reference to brand names shall
not be allowed.

1. To verify the effects of Analyze the instances of non- Appropriate Audit Working Papers
instances of non- compliances to establish the
compliance on the: effects and develop
appropriate audit
a. validity of the recommendations.
the validity of the
resulting contract;
of the contract;
c. etc.
2. To verify the causes of Analyze the instances of non- Appropriate Audit Working Papers
instances of non- compliances to establish the
compliance and develop cause(s) and develop
appropriate audit
appropriate audit
recommendations.
recommendations
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Prepared by:
Commission on Audit
of the
Answer
3. To communicate the Prepare the appropriate audit/
results of the audit with validation document reflecting Audit Observation Memorandum (AOM), if
the auditees Management the results of the applicable
to Management
of Accounts
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II. PREPARATORY ACTIVITY:
PRE-PROCUREMENT CONFERENCE
(For procurement of goods costing more than P2 million)
The pre-procurement conference is the forum where all officials involved in the procurement
meet and discuss all aspects of a specific procurement activity, which includes the technical
specifications, the Approved Budget for the Contract (ABC), the applicability and appropriateness
of the recommended method of procurement and the related milestones, the bidding documents,
and availability of the pertinent budget release for the project.
1. To verify if the Pre-Procurement Conference was conducted within the required time
2. To verify if the participants to the Conference are as required
3. To verify if during the Conference the participants, led by the Bids and Awards
Committee (BAC), performed the required tasks and attained the objectives of the
Conference

a. copy of the Minutes of Pre-Procurement Conference duly certified by the BAC
Secretariat;
b. Invitation to Bid;
c. Duly certified copies of the documents (Office Orders, contracts,
Organizational/Functional Charts, etc) which the BAC Secretariat used as bases for
identifying and notifying the participants to the Pre-Procurement Conference, including
duly certified copies of the notices issued with evidence of receipt by the participants.

Audit Activities
Audit Criteria Audit Question Yes No Particulars of
the Answer
1. To verify if the BAC 1. Secure from the BAC Did the BAC
conducted the Pre- Secretariat a duly certified conduct the Pre-
Procurement Conference prior copy of the Minutes of Pre- Procurement
to the advertisement or the Procurement Conference Conference prior
and compare the date the to the
issuance of the Invitation to conference was held with advertisement or
Bid the date indicated in the issuance of the
Invitation to Bid (included in Invitation to Bid?
Implementing Rules and Regulations the Bidding Documents)
September 2, 2009:
20.1. Prior to the Advertisement or
the issuance of the Invitation to Bid
for each procurement undertaken
through public bidding, the BAC,
through its Secretariat shall call for a
Pre-Procurement Conference.
2. To verify if the participants 2. Secure from the BAC Did the

to the Pre-Procurement Secretariat duly certified attendees to the
Conference included the BAC, copies of the documents Conference
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Prepared by:
Commission on Audit
Audit Activities
the Answer
the Secretariat, the unit or (Office Orders, contracts, include the:
officials, including consultants Organizational/Functional
hired by the procuring entity, Charts, etc) which it used as a. BAC?
bases for identifying and
who prepared the Bidding
notifying the participants to b. Secretariat?
Documents and the draft the Pre-Procurement
Invitation to Bid Conference, including duly c. unit or
certified copies of the officials who
Implementing Rules and Regulations notices issued with evidence prepared the
(IRR) of RA 9184, as amended on of receipt by the Bidding
September 2, 2009: participants. Documents
20.1. The pre-procurement and the draft
conference shall be attended by the 3. From the Minutes of Pre- Invitation to
BAC, the Secretariat, the unit or Procurement Conference Bid?
officials, including consultants hired look for the names of the
by the procuring entity, who members of the BAC, the d. consultants
prepared the Bidding Documents members of the Secretariat, hired by the
and the draft Invitation to Bid, for the officials and/or procuring
each procurement. consultants who prepared entity, who
the Bidding Documents and prepared the
the draft Invitation to Bid. Bidding
Documents
and the draft
Invitation to
Bid?
3. To verify if the BAC observed 4. From the Office Order Was there a
quorum creating the BAC, determine quorum of the
the number of BAC BAC?
Implementing Rules and Regulations members and identify the
(IRR) of RA 9184, as amended on Chairman or Vice-Chairman.
September 2, 2009:
12.3 Quorum 5. From the Minutes of Pre-
A majority of the total BAC Procurement Conference,
composition as designated by the Head check for the presence of
of the Procuring Entity shall constitute the Chairman or Vice-
a quorum for the transaction of Chairman and if majority of
business, provided that the presence the BAC members or
of the Chairman or Vice-Chairman shall representatives/alternates
be required. attended the conference.
4. To verify if during the Pre- 6. From the Minutes of Pre- Did the
Procurement Conference the Procurement Conference participants led
participants, led by the BAC, look for information on the by the BAC
presentation of the scope of discuss and
performed the following tasks
the contract, the ABC, and confirm the:
and attained the related
contract duration, the
objectives: deliberation thereon, and a. Description of
a. Discussed relevant the conclusions reached as a the scope of
information and confirmed the result of the deliberation; the contract?
description of the scope of the and analyze if they led to
contract, the ABC, and the confirmation of the b. ABC?
contract duration; description of the scope of
b. Discussed relevant the contract, the ABC, and c. Contract
the contract duration. duration?
information and confirmed
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Commission on Audit
Audit Activities
the Answer
that the procurement is in Did the
accordance with the project 7. From the Minutes of Pre- participants led
procurement management Procurement Conference by the BAC
look for information on the discuss and
plan (PPMP) and annual
presentation of the review of confirm that the:
procurement plan (APP); the PPMP and APP,
c. Discussed relevant availability of appropriations a. procurement
information and confirmed the and programmed budget for is in
availability of appropriations the contract, the accordance
and programmed budget for deliberation thereon, and with the PPMP
contract; the conclusions reached as a and APP?
d. Discussed relevant result of the deliberation;
information and confirmed the and analyze if they led to b. appropriations
the confirmation of the and
completeness of the Bidding
procurement is in programmed
Documents and their accordance with the PPMP budget for the
adherence to relevant general and APP, and availability of contract are
procurement guidelines; appropriations and available?
e. Reviewed, modified and programmed budget for the
agreed on the criteria for contract. Did the
eligibility screening, participants led
evaluation, and post- by the BAC
qualification; 8. From the Minutes of Pre- discuss and
Procurement Conference confirm the
f. Reviewed and adopted the
look for information on the following:
procurement schedule, presentation of the Bidding
including deadlines and Documents, the deliberation a. completeness
timeframes, for the different thereon, and the conclusions of
activities; and reached as a result of the the Bidding
g. Reiterated and deliberation; and analyze if Documents?
emphasized the importance of they led to the confirmation
confidentiality and the of the completeness of the b. adherence to
applicable sanctions and Bidding Documents and their the PBDs/
adherence to the Philippine
penalties, as well as agreed on customized
Bidding Documents (PBDs)/ Bidding
measures to ensure customized Bidding
compliance with the foregoing. Documents?
Documents.
Implementing Rules and Regulations Did the
(IRR) of RA 9184, as amended on participants led
9. From the Minutes of Pre-
September 2, 2009: by the BAC
Procurement Conference
look for information on the discuss and
20.1. During the conference, the confirm the
presentation of the criteria
participants, led by the BAC, shall: criteria for:
for eligibility screening, bid
a) Confirm the description and
evaluation, and post-
scope of the contract, the ABC, a. Eligibility
qualification, the deliberation
and contract duration; screening?
thereon, and the conclusions
b) Ensure that the procurement is
reached as a result of the
in accordance with the project b. Bid
deliberation; and analyze if
and annual procurement plans; evaluation?
they led to the confirmation
c) Determine the readiness of the
of the criteria for eligibility
procurement at hand, including, c. Post-
screening, bid evaluation,
among other aspects, the qualification?
and post-qualification.
following:
o availability of appropriations
Did the
and programmed budget
10. From the Minutes of Pre- participants led
for contract;
Procurement Conference by the BAC
o completeness of the
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Bidding Documents and look for information on the discuss and
their adherence to relevant presentation of the confirm the:
general procurement procurement schedule,
guidelines; including deadlines and a. adoption of
d) Review, modify and agree on timeframes for the different the
the criteria for eligibility activities, the no-contact procurement
screening, evaluation, and post- rule, the deliberation schedule
qualification; thereon, and the conclusions including
e) Review and adopt the reached as a result of the deadlines and
procurement schedule, including deliberation; and analyze if timeframes
deadlines and timeframes, for they led to the confirmation for the
the different activities; and of the adoption of the different
f) Reiterate and emphasize the procurement schedule activities?
importance of confidentiality including deadlines and
and the applicable sanctions timeframes for the different b. agreement on
and penalties, as well as agree activities and agreement on the no-
on measures to ensure the no-contact rule. contact rule?
compliance with the foregoing.

accordance with the approved APP
of the procuring entity. The APP
shall bear the approval of the
Head of the Procuring Entity or
second-ranking official designated
by the Head of the Procuring
Entity to act on his behalf, and
must be consistent with its duly
approved yearly budget.
GPPB Circular 01-2009 dated 20

January 2009:

4.2. To facilitate the immediate
implementation of projects even
pending approval of the GAA, the
ABC shall be based on the budget
levels under the National
Expenditure Program (NEP)
submitted to Congress.
4.3. For specifically appropriated
projects, agencies can proceed
with the procurement activities
prior to issuance of the notice of
award using as basis the NEP
figures.
4.4. For lump-sum appropriations and
Centrally Managed Items (CMIs)
under the agencys budget, the
head of the agency shall identify
and thereafter notify the
implementing units (IUs) of the
amount allocated for the projects
they are to implement. On the
basis of said notification, the
heads of the respective IUs, as
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procuring entities, can proceed
award.
4.5. For Multi-Year Projects (MYPs),
for which the initial funding
sourced from either the
existing/current years budget or
the NEP is not sufficient to
cover the total cost of the
project, it is required that a Multi-
Year Obligational Authority
(MYOA) must already have been
issued in accord with DBM
Circular Letter 2004-012 prior to
commencement of any
procurement activity.
Thus, the MYOA shall be a
pre-requisite for procurement of
a multi-year contract. All
procurement activities should be
within the total project cost and
categories reflected in the MYOA
issued by DBM for the said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I,
Book V of the Administrative
Code of 1987, no contract
involving the expenditure of
public funds shall be entered into
unless the proper accounting
shall have certified as to the
availability of funds and the
allotment to which the
expenditure or obligation may be
properly charged.
Definition:
3.1. Allotment - document issued
by the Department of Budget
and Management (DBM) which
authorizes an agency to incur
obligations for a specified
amount as contained in a
legislated appropriation. The
allotment issued may either be
trough the Agency Budget
Matrix (ABM) which covers the
comprehensive release of
specifically appropriated items
in the agencys budget or
through the Special Allotment
Release Order (SARO).
3.2. Annual Procurement Plan

(APP) the requisite document
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that the agency must prepare
to reflect the entire
procurement activity (i.e.,
goods, services, civil works to
be procured) that it plans to
undertake within the calendar
year. This document contains
the following information:
3.2.1. Name of the procurement
program/project;
3.2.2. Project management office
or end-user unit;
3.2.3. General description of the
procurement;
3.2.4. Procurement method to be
adopted;
3.2.5. Time schedule for each
procurement activity;
3.2.7. Approved Budget for the
Contract.
3.3. Approved Budget for the

Contract (ABC) refers to the
following:
NGs including SUCs (referred to in
Section 2.1)
3.3.1. For specifically
appropriated items as reflected in
the annual budget of the national
government agency, the amount
corresponding to either the full
cost of a single year or multi-year
program/project/ activity. For
multi-year projects, for which a
Multi-Year Obligational Authority
has been issued, the ABC shall be
the amount reflected in the Multi-
Year Obligational Authority.
GOCCs and LGUs (referred to in
Section 2.2)
3.3.3. In the case of GOCCs,
including government financial
institutions as well as LGUs, the
ABC represents the amount of
fund transfers which they receive
from a national government
agency to implement a
program/project/activity.

3.8. Multi-Year Obligational

Authority (MYOA) a document
issued by the DBM either for
locally funded projects or foreign
assisted projects implemented by
agencies in order to authorize the
latter to enter into multi-year
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contracts for the full project cost.
A MYOA, which contains an annual
breakdown of the full project cost,
obligates agencies to include in
their budget proposal for the
ensuring years the amount
programmed for the said year(s).
3.9. National Expenditure
Program (NEP) the proposed
national budget submitted by the
President to Congress in accord
with Section 22, Article VII of the
Constitution. The NEP shall be the
basis of the general appropriations
bill, which upon its enactment,
becomes the General
Appropriations Act (GAA).

instances of non-compliance non-compliances to establish
on the: the effects and develop
appropriate audit
a. validity of the procurement recommendations.
activities and outputs
including the validity of the
resulting contract;
b. validity of any payment to
be made on the basis of the
contract;
c. etc.
and develop appropriate audit
recommendations
instances of non-compliance non-compliances to establish
and develop appropriate audit the cause(s) and develop
appropriate audit
recommendations
recommendations.
3. To communicate the results Prepare the appropriate

of the audit with the auditees audit/ validation document Audit Observation Memorandum (AOM), if
Management reflecting the results of the applicable
to Management
September 15, 2009 re- Prescribing
the Use of the Rules and Regulations
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III. ADVERTISING AND POSTING OF THE INVITATION TO BID
(For procurement of goods costing more than P2 million)
Advertising and posting are conducted to ensure transparency of the procurement

process, widest possible dissemination to increase the number of prospective bidders, and
intensify competition for the procurement activity or project
A. AUDIT OBJECTIVE:
To verify if the Invitation to Bid was advertised and posted in the media as required and
within the specified time

1. Entire page of the newspaper where the Invitation to Bid was advertised;
2. Document used by the BAC Secretariat to verify from the publisher the extent of
circulation of the newspaper and the first day of its publication;
3. Printout of the web page where the Invitation to Bid was posted in the PhilGEPS website,
the website of the procuring entity concerned, if available, and website prescribed by the
foreign government/ foreign or international financing institution, if applicable for the first
day and at least the last day of posting;
4. Certification by the head of the BAC Secretariat of the procuring entity that the invitation
was posted at any conspicuous place reserved for the purpose in the premises of the
procuring entity for 7 calendar days.

the Answer
1. To verify if the BAC 1. Request the BAC Secretariat Did the BAC
advertised the Invitation to to provide a copy of the entire advertise the
Bid in a newspaper of page of the newspaper where Invitation to Bid in
the Invitation to Bid was a newspaper of
general nationwide
advertised, to be submitted to general nationwide
circulation which has been
the Auditor on the day of circulation which
regularly published for the advertisement. has been regularly
last 2 years before the date published for the
of issue of the advertisement 2. From the verification last 2 years before
document obtained by the BAC the date of issue of
Implementing Rules and Regulations Secretariat from the publisher, the advertisement?
(IRR) of RA 9184, as amended on check the extent of circulation
September 2, 2009: of the newspaper and the first
21.2.1. Except as otherwise day of publication.
provided in Sections 21.2.2 and
54.2 of this IRR and for the
procurement of common-use
goods and supplies, the Invitation
to Bid shall be:
a. Advertised at least once in a
newspaper of general nationwide
regularly published for at least 2
years before the date of issue of
the advertisement.
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2. To verify if the BAC posted 3. Ahead of any procurement, Did the BAC
the Invitation to Bid request the BAC Secretariat for advertise the
continuously in the PhilGEPS advance information on the Invitation to Bid
first day of any posting. continuously in the:
website, the website of the
procuring entity concerned, 4. On the first day of posting 1. PhilGEPS website
if available, and the website access the PhilGEPS website, for 7 calendar
prescribed by the foreign the website of the procuring days starting on
government/foreign or entity concerned, if available, the date of
international financing and website prescribed by the advertisement?
institution, if applicable, for foreign government/ foreign or
7 calendar days starting on international financing 2. website of the
the date of advertisement institution, if applicable. Print procuring entity
the page where the notice was concerned, if
posted (to form part of the available, for 7
audit evidences). calendar days
starting on the
September 2, 2009:
5. Access the websites at date of
21.2.1. Except as otherwise
random during the 7-day advertisement?
period to verify the postings.
3. website
prescribed by
the foreign
to Bid shall be:
government/
a.
foreign or
b. Posted continuously in the
international
PhilGEPS website, the website
financing
institution, if
concerned, if available, and the
applicable, for 7
website prescribed by the
calendar days
foreign government/foreign or
starting on the
international financing
date of
institution, if applicable, for 7
advertisement?
calendar days starting on the
date of advertisement
3. To verify if the BAC posted 6. Ahead of any procurement, Did the BAC post
the Invitation to Bid request the BAC Secretariat for the Invitation to
continuously at any advance information on the Bid:
first day of any posting.
conspicuous place reserved 1. continuously for
for the purpose in the seven (7) calendar
7. Conduct ocular inspection
premises of the procuring on the first day of posting. days,
entity for 7 calendar days, as
certified by the head of the 2. at the
8. Repeat the ocular
conspicuous place
BAC Secretariat of the inspections (may be at
reserved for the
procuring entity random) during the 7-day
purpose in the
period to verify the postings.
Implementing Rules and Regulations premises of the
(IRR) of RA 9184, as amended on procuring entity,
9. Request for the certification
September 2, 2009: of the head of the BAC 3. as certified by
Secretariat. the head of the
BAC Secretariat of
the procuring
entity?
to Bid shall be:
a.
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b.
c. Posted at any conspicuous place
reserved for the purpose in the
premises of the procuring entity
for 7 calendar days, as certified
by the head of the BAC
Secretariat of the procuring
entity.

1. To verify the effects of Analyze the instances of non- Appropriate Audit Working Papers
instances of non-compliance compliances to establish the
on the: effects and develop
appropriate audit
procurement activities and
outputs including the
contract;
be made on the basis of
the contract;
c. etc.
2. To verify the causes of Analyze the instances of non- Appropriate Audit Working Papers
instances of non-compliance compliances to establish the
and develop appropriate cause(s) and develop
appropriate audit
recommendations.

results of the audit with the validation document reflecting Audit Observation Memorandum (AOM), if
auditees Management the results of the applicable
to Management
Accounts
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IV. POSTING OF THE INVITATION TO BID
(For procurement of goods costing P2 million and below)
A. AUDIT OBJECTIVE:
To verify if the Invitation to Bid was posted in the media as required and within the specified
time

1. Printout of the web pages where the Invitation to Bid was posted in the PhilGEPS website,

of the
Answer
1. To verify if the BAC posted 1. Ahead of any Did the BAC post the
the Invitation to Bid procurement, request the Invitation to Bid
continuously in the PhilGEPS BAC Secretariat for advance continuously in the:
information on the first day
of any posting. 1. PhilGEPS website
procuring entity concerned,
for 7 calendar
if available, and the website 2. On the first day of posting days starting on
prescribed by the foreign access the PhilGEPS website, the date of
government/foreign or the website of the procuring advertisement?
international financing entity concerned, if
institution, if applicable, for available, and website 2. website of the
7 calendar days starting on prescribed by the foreign procuring entity
the date of advertisement government/ foreign or concerned, if
international financing available, for 7
institution, if applicable. calendar days
Print the page where the starting on the
notice was posted (to form date of
September 2, 2009:
part of the audit evidences). advertisement?
21.2.2. Advertisement of the
Invitation to Bid n a newspaper of
3. Access the websites at 3. website prescribed
general nationwide circulation
random during the 7-day by the foreign
provided in Section 21.2.1 (a)
period to verify the postings. government/
shall not be required for contracts
foreign or
to be bid with an approved budget
international
of Two Million Pesos
financing
(P2,000,000.00) and below 21.2.1.
institution, if
Except as otherwise provided in
applicable, for 7
Sections 21.2.2 and 54.2 of this
calendar days
IRR and for the procurement of
starting on the
common-use goods and supplies,
date of
the Invitation to Bid shall be:
advertisement?
b.
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continuously at any BAC Secretariat for advance continuously at any
information on the first day conspicuous place
conspicuous place reserved
of any posting. reserved for the
for the purpose in the purpose in the
premises of the procuring 5. Conduct ocular premises of the
entity for 7 calendar days, as inspection on the first day of procuring entity for 7
certified by the head of the posting. calendar days, as
BAC Secretariat of the certified by the head
procuring entity 6. Repeat the ocular of the BAC Secretariat
inspections (may be at of the procuring
Implementing Rules and Regulations random) during the 7-day entity?
(IRR) of RA 9184, as amended on period to verify the postings.
September 2, 2009:
21.2.1 7. Request for the
a. certification of the head of
b the BAC Secretariat
c. Posted continuously at any
conspicuous place reserved for
the purpose in the premises of
the procuring entity for 7
calendar days, as certified by
the head of the BAC Secretariat
concerned.

1. To verify the effects of Analyze the instances of
instances of non-compliance non-compliances to establish Appropriate Audit Working Papers
appropriate audit
contract;
the contract;
c. etc.
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Answer
2. To verify the causes of Analyze the instances of
and develop appropriate the cause(s) and develop
appropriate audit
recommendations.

results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if
auditees Management reflecting the results of the applicable
to Management
Accounts
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V. ISSUANCE OF BIDDING DOCUMENTS FOR THE PROCUREMENT OF GOODS
The bidding documents must be made available to the prospective bidders from the time
the Invitation to Bid is advertised until immediately before the deadline for submission of bids.
1. To determine whether the prescribed procedures in the issuance of bidding documents

were followed
2. To determine whether the prescribed timelines in the issuance of bidding documents were
followed

1. Invitation to Bid;
day of posting;
3. Records of the BAC on issued bidding documents (with information on Official Receipt
numbers) for the procurement at hand.

the Answer
1. To verify if the BAC 1. Compare the period of Did the BAC make
observed the time required availability of the Bidding the bidding
in making the Bidding Documents indicated in the documents
Documents available, that is, Invitation to Bid with the available from the
first day of time the Invitation
from the time the Invitation
advertising/posting of the to Bid was first
to Bid was first advertised up Invitation to Bid (day 1 of advertised/ posted
to the deadline for the period) and the deadline for up to the deadline
submission and receipt of the submission of bids (last for the submission
bids day of period). and receipt of bids?

September 2, 2009:
17.3. To provide prospective
bidders ample time to examine the
Bidding Documents and to prepare
their respective bids, the
concerned BAC shall make the
Bidding Documents for the
contract to be bid available for the
following period:
a) For the procurement of goods,

from the time the Invitation to
Bid is first advertised/posted
until the deadline for the
submission of bids.
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the Answer
2. To verify if the BAC posted 2. Ahead of any Did the BAC post
the Bidding Documents at procurement, request the the Bidding
the website of the procuring BAC Secretariat for advance Documents in the:
entity and at the PhilGEPS
of any posting of Bidding a. PhilGEPS
website from the time that Documents. website starting
the Invitation to Bid was on the first day
advertised up to the deadline 3. On the first day of posting of
for the submission and access the PhilGEPS website, advertisement?
receipt of bids the website of the procuring
entity concerned, if b. website of the
Implementing Rules and Regulations available. procuring entity
(IRR) of RA 9184, as amended on concerned, if
September 2, 2009: Print the page where
available,
the notice was posted (to
17.5 The procuring entity shall starting on the
form part of the audit
also post the Bidding Documents first day of
evidences).
at its website and at the PhilGEPS advertisement?
website from the time that the
4. Access the websites at
Invitation to Bid is advertised.
random from the first day of
Prospective Bidders may download
posting up to the deadline
the Bidding Documents from any
for the submission and
of the said websites; Provided
receipt of bids to verify the
that, bidders shall pay the fee for
postings.
the Bidding Documents upon
submission of their Bids.
3. To verify if all bidders 5. Compare the records of Did all the bidders
that secured Bidding the BAC on issued bidding who submitted bids
Documents paid to the documents (with information pay the correct
on Official Receipt numbers) amount for the
authorized collecting officer
for the procurement at hand bidding documents
of the procuring entity with copies of Official to the authorized
Implementing Rules and Regulations Receipts (ORs) issued by collecting officer of
(IRR) of RA 9184, as amended on authorized collecting officers the procuring
September 2, 2009: for the sale of bidding entity?
17.4. Bidders may be asked to documents.
pay for the Bidding Documents to
recover the cost of its preparation
and development. The BAC shall 6. After submission of bids,
issue the Bidding Documents upon for bidders that downloaded
payment of the corresponding cost bidding documents, compare
thereof to the collecting/ disbursing the OR numbers indicated in
officer of the procuring entity the records of the BAC
concerned. Secretariat with copies of
17.5. Prospective bidders may the ORs or Report of
download the Bidding Documents Collection of authorized
from any of the said websites; collecting officers.
Provided that, bidders shall pay the
fee for the Bidding Documents upon
submission of their bids.

appropriate audit
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contract;
the contract;
c. etc.

appropriate audit
recommendations.

to Management
Accounts
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VI. PRE-BID CONFERENCE
For procurement of goods with
Approved Budget for the Contract of at least One Million Pesos (P 1 Million)
The pre-bid conference is the initial forum where the Procuring Entitys representatives
and the prospective bidders discuss the different aspects of the procurement at hand.
A pre-bid conference must be held for contracts with ABCs of at least One Million Pesos (P
1 Million). For contracts with ABCs of less than P 1 million, pre-bid conferences may or may not be
held at the discretion of the BAC. The BAC may also decide to hold a pre-bid conference upon the
written request of a prospective bidder.
1. To verify if the BAC conducted a Pre-Bid Conference for a contract with ABC of at least
P1 million
2. To verify if the Pre-Bid Conference was conducted within the required time
3. To verify if during the Pre-Bid Conference the participants, led by the BAC, performed
the required tasks

2. Minutes of the pre-bid conference approved by the BAC;
3. Minutes of the BAC meeting on the selection of the Observer from the pool;
4. Invitations to the Observers with evidence of receipt.

Answer
1. To verify if the BAC 1. If the ABC is at least P1 Did the BAC hold a
conducted a Pre-Bid million, obtain certified Pre-Bid Conference
Conference for a contract copies of the Invitation to for a contract with
Bid and Minutes of the Pre- ABC of at least P1
with ABC of at least P1
Bid Conference. million?
million

22.1. For contracts to be bid
with an approved budget of One
Million Pesos (P1,000,000.00) or
more, the BAC shall convene at
least one (1) pre-bid conference
to clarify and/or explain any of
the requirements, terms,
conditions, and specifications
stipulated in the Bidding
Documents. For contracts to be
bid with an approved budget of
less than One Million Pesos
(P1,000,000), pre-bid
conferences may be conducted
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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.
2. To verify if the Pre-Bid 2. Based on the deadline for Was the Pre-Bid
Conference was held at the submission and receipt Conference held at
least twelve (12) calendar of bids indicated in the least twelve
days before the deadline Invitation to Bid, determine calendar days
the 12th day before such before the deadline
deadline. for the submission
receipt of bids and receipt of
3. Compare the date bids?
Implementing Rules and established in 2. above with
Regulations (IRR) of RA 9184, as the date of holding the Pre-
amended on September 2, 2009: Bid Conference indicated in
22.2 The pre-bid conference the certified copy of the
shall be held at least twelve Minutes of Pre-Bid
(12) calendar days before the Conference .
deadline for the submission and
receipt of bids. 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 pre-bid conference shall be
held at least thirty (30) calendar
days before the deadline for the
submission and receipt of bids.
3. To verify if the BAC 4. From the Office Order Was there a

observed quorum. creating the BAC, determine quorum of the
the number of BAC BAC?
Implementing Rules and members and identify the
Regulations (IRR) of RA 9184, as Chairman or Vice-Chairman.
12.3 Quorum
A majority of the total BAC 5. From the Minutes of Pre-
composition as designated by the Bid Conference, check for
Head of the Procuring Entity shall the presence of the
constitute a quorum for the Chairman or Vice-Chairman
transaction of business, provided and if majority of the BAC
that the presence of the Chairman members or
or Vice-Chairman shall be representatives/alternates
required. attended the conference.
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4. To verify if during the 6. From the Minutes of Pre- Did the BAC
Conference the BAC Bid Conference look for present, discuss,
performed the following information on the and answer queries
presentation/discussion, on the following:
tasks and attained the
issues/questions raised by
related objectives: prospective bidders, and a. eligibility
a. Presented the eligibility clarifications made thereon requirements?
requirements as well as relative to the following:
a. eligibility requirements, b. technical
the technical and
b. technical component of component of
financial components of the contract to be bid, the contract to
the contract to be bid, c. financial component of be bid?
the evaluation the contract to be bid,
procedures, evaluation d. bid evaluation criteria, c. financial
criteria, and possible e. bid evaluation component of
causes of failure of the procedures, the contract to
bidding. f. post-qualification criteria, be bid?
g. post-qualification
b. Discussed the procedures, d. bid evaluation
requirements in the h. possible causes of failure criteria?
ITB, replied to the of the bidding,
bidders queries about i. requirements in the e. bid evaluation
the requirements, Instructions to Bidders, procedures?
j. specifications,
specifications and other
k. other conditions of the f. post-
conditions of the
project, qualification
project, the procedures l. warranty requirement of criteria?
on the bid evaluation of the project,
all bidders and post- m. different offenses and g. post-
qualification evaluation penalties provided for in qualification
of the lowest calculated IRR of RA 9184 procedures?
bidder. Emphasized the
warranty requirement h. possible causes
of the project and the of failure of the
bidding?
different offenses and
penalties provided for i. requirements in
in IRR of RA 9184. the Instructions
to Bidders?
Regulations (IRR) of RA 9184, as j. specifications?
k. other conditions
22.3. The pre-bid conference of the project?
shall discuss, among other
things, the eligibility l. warranty
requirements and the technical requirement of
and financial components of the the project?
contract to be bid. Attendance
of the bidders shall not be m. different
mandatory. However, AT THE offenses and
OPTION OF THE PROCURING penalties
ENTITY [amendment per provided for in
Annex A of GPPB Resolution IRR of RA
No. 06-2009 dated 30 9184?
September 2009] only those
who have purchased the
Bidding Documents shall be
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Answer
allowed to participate in the
pre-bid conference and raise or
submit written queries or
clarifications.
Generic Procurement Manual,

Volume 2, Manual of Procedures
for the Procurement of Goods and
Services issued by the GPPB:
The manner by which the pre-
bid conference is conducted
depends on the discretion of the
BAC. However, several events
need to take place in the
conference, namely:
a. The presentation by the BAC
of the eligibility requirements
as well as the technical and
financial components of the
contract to be bid, the
evaluation criteria, and
possible causes of failure of
the bidding.
b. The BAC chairperson shall
also discuss the requirements
in the ITB, the replies to the
bidders queries about the
requirements, specifications
and other conditions of the
project, the bid evaluation of
all bidders and post-
qualification evaluation of the
lowest calculated bidder.
Emphasis should also be
given to the warranty
requirement of the project
and the different offenses and
penalties provided for in IRR-
A of R.A. 9184.
5. To verify if the BAC 7. Compare the date of the Were the Minutes
Secretariat recorded the approval of the Minutes of of the Pre-Bid
proceedings of the Pre-Bid the pre-bid conference with Conference made
the date of the pre-bid available not later
Conference and made the
conference. than three (3)
Minutes available to all
calendar days after
participants not later than the pre-bid
three (3) calendar days conference?
after the pre-bid
conference
Implementing Rules and 8. Confirm with the Were the minutes

Regulations (IRR) of RA 9184, as participants (telephone calls of pre-bid
amended on September 2, 2009: or letters) if they were given conference made
22.4 The minutes of the pre-bid copies of the Minutes and available by the
conference shall be recorded when. BAC Secretariat to
and made available to all all the participants?
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participants not later than three
(3) calendar days after the pre-
bid conference
6. To verify if the BAC 9. From the Minutes of the Did the BAC
invited Observers: BAC meeting on the choose the
a. representing the COA, selection of the Observer Observers
from the pool, check for considering:
the specific relevant
information on the BACs
chamber-member of the
evaluation in regard to: a. one
Philippine Chamber of
the selection of the representing
Commerce and Industry,
organization from which the COA?
and a non-government
the Observer will be
organization (NGO) from
invited; b. One
the procuring entitys Pool
knowledge, experience or representing
of Observers;
expertise in procurement the specific
b. that have:
or in the subject matter relevant
b.1. knowledge, of the contract to be bid; chamber-
experience or expertise no actual or potential member of the
in procurement or in the conflict of interest in the Philippine
subject matter of the contract to be bid; and Chamber of
contract to be bid; conformed with other Commerce and
b.2. no actual or potential relevant criteria Industry?
conflict of interest in the determined by the BAC.
contract to be bid; and c. One
b.3. conformed with other representing a
relevant criteria non-
determined by the BAC; government
c. at least 3 calendar days organization?
prior to the pre-bid
conference d. With
knowledge,
experience or
Implementing Rules and expertise in
Regulations (IRR) of RA 9184, procurement or
as amended on September 2, in the subject
2009: matter of the
contract to be
Section 13. Observers
bid?
13.1. To enhance the
transparency of the process, the
e. With no actual
BAC shall, in all stages of the
or potential
procurement process, invite, in
conflict of
addition to the representative of
interest in the
the COA, at least two (2)
contract to be
observers, who shall not have the
bid?
right to vote, to sit in its
proceedings where:
a) At least one (1) shall come
f. Conformed with
from a duly recognized private
other relevant
group in a sector or discipline
criteria
relevant to the procurement at
determined by
hand, for example:
the BAC?
i)
ii) For goods, a specific relevant
Philippine Chamber of 10. From certified copies of Did the BAC invite
Commerce and Industry. the invitations to the the Observers at
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Answer
iii) and Observers with evidence of least 3 days before
b) The other observer shall come receipt, compare the date of the date of the
from a non-government receipt with the 3-day pre-bid
organization (NGO). minimum requirement. conference?
13.2. The observers shall come

from an organization duly
registered with the Securities
and Exchange Commission (SEC)
or the Cooperative Development
Authority (CDA), and should meet
the following criteria:
contract to be bid;
c) Any other relevant criteria that
may be determined by the BAC.
13.3. Observers shall be invited at
least three (3) calendar days
before the date of the
procurement stage/activity. The
absence of observers will not
nullify the BAC proceedings,
provided that they have been duly
invited in writing.

instances of non- non-compliances to establish Appropriate Audit Working Papers
compliance on the: the effects and develop
appropriate audit
the validity of the
resulting contract;
of the contract;
c. etc.
audit recommendations.

compliance and develop the cause(s) and develop
appropriate audit
appropriate audit
recommendations.
recommendations
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Answer
2009:
13.3. Observers shall be invited
at least three (3) calendar days
provided that they have been
duly invited in writing.

the auditees Management reflecting the results of the
to Management
of Accounts
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VII. SUPPLEMENTAL / BID BULLETINS FOR THE PROCUREMENT OF GOODS
Supplemental/Bid Bulletins may be issued upon the procuring entitys initiative for purposes of
clarifying or modifying any provision of the Bidding Documents at least seven (7) calendar days
before the deadline for the submission and receipt of bids. Any modification to the Bidding
Documents shall be identified as an amendment.
A. AUDIT OBJECTIVE:
To verify if Supplemental / Bid Bulletins were issued as required

1. Minutes of the Pre-Bid Conference approved by the BAC;
2. Copy of the Supplemental/Bid Bulletin;
3. Copies of Requests for Clarification submitted by bidder with evidence of receipt by the
BAC Secretariat;
4. Printouts of PhilGEPS web page evidencing posting of the Supplemental/Bid Bulletin;
5. Printout of the procuring entitys web page evidencing posting of the Supplemental/Bid
Bulletin.

of the
Answer
1. To verify if the BAC issued 1. Go over the Minutes of Did the BAC issue
Supplemental / Bid Bulletins the Pre-Bid Conference and Supplemental/Bid
in regard to statements made check for statements that Bulletins in regard to
could modify the terms of statements made at
at the pre-bid conference that
the Bidding Documents. the pre-bid
could modify the terms of the conference that could
Bidding Documents 2. Obtain a copy of the modify the terms of
related Supplemental / Bid the Bidding
Bulletin. Documents?
September 2, 2009:
22.4. Any
statement made at the pre-bid
conference shall not modify the terms
of the Bidding Documents, unless
such statement is specifically
identified in writing as an amendment
thereto and issued as a
Supplemental/ Bid Bulletin.
2. To verify if: 3. Obtain copy/ies of Were Requests for

a. requests for Requests for Clarification Clarification
clarification(s) on any and check (date of receipt submitted at least ten
stamped on the letters) (10) calendar days
part of the Bidding
whether these were before the deadline
Documents or for an
submitted at least ten (10) set for the submission
interpretation were in calendar days before the and receipt of bids?
writing and submitted to deadline set for the
the BAC of the procuring submission and receipt of
entity at least ten (10) bids.
calendar days before the
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deadline set for the 4. Obtain duly certified Were Supplemental/
submission and receipt of copies of Supplemental/Bid Bid Bulletins signed
bids; Bulletins and check for the by the BAC
signature of the BAC Chairman?
b. the Supplemental/ Bid Chairman.
Bulletin was duly signed
by the BAC Chairman; 5. From the records of the Were Supplemental/
BAC (copies of Bid Bulletins issued at
c. the Supplemental/ Bid Supplemental/Bid Bulletins least seven (7)
Bulletin was issued at with evidence of the date of calendar days before
least seven (7) calendar issuance) check if the deadline for the
days before the deadline Supplemental/Bid Bulletins submission and
for the submission and were issued at least seven receipt of bid?
receipt of bid. (7) calendar days before the
deadline for the submission
Implementing Rules and Regulations and receipt of bid.
September 2, 2009:
22.5.1 Requests for clarification(s)
on any part of the Bidding
Documents or for an interpretation
must be in writing and submitted
to the BAC of the procuring entity
at least ten (10) calendar days
before the deadline set for the
submission and receipt of bids. The
BAC shall respond to the said
request by issuing a
Supplemental/Bid Bulletin, duly
signed by the BAC Chairman, to be
made available to all those who
have properly secured the Bidding
Documents, at least seven (7)
calendar days before the deadline
for the submission and receipt of
bids.
3. To verify if:
6. Obtain duly certified Were Supplemental/
a. Supplemental/Bid Bulletins copies of Supplemental/Bid Bid Bulletins initiated
initiated by the procuring Bulletins with evidence of by the procuring
entity for purposes of the date of issuance and entity for purposes of
clarifying or modifying any check if these were issued at clarifying or
provision of the Bidding least seven (7) calendar modifying any
days before the deadline for provision of the
Documents were issued at
the submission and receipt Bidding Documents
least seven (7) calendar of bid. were issued at least
days before the deadline seven (7) calendar
for the submission and days before the
receipt of bids; deadline for the
submission and
b. Modifications to the receipt of bids?
Bidding Documents were
identified as amendments.
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Implementing Rules and Regulations 7. Go through the contents Were modifications to
(IRR) of RA 9184, as amended on of Supplemental/Bid the Bidding
September 2, 2009: Bulletins and check if Documents were
22.5.1. issuing a amendments were identified identified as
Supplemental/Bid Bulletin, duly as such. amendments?
signed by the BAC Chairman
22.5.2 Supplemental/Bid Bulletins 8. Go through the Were

may be issued upon the procuring Supplemental/Bid Bulletins Supplemental/Bid
entitys initiative for purposes of and check for the signature Bulletins duly signed
clarifying or modifying any of the BAC Chairman. by the BAC
provision of the Bidding Documents Chairman?
at least seven (7) calendar days
before the deadline for the
Any modification to the Bidding
Documents shall be identified as an
amendment.
4. To verify if the BAC posted 9. In advance of the posting, Did the BAC post
Supplemental/ Bid Bulletins request the BAC Secretariat Supplemental/Bid
issued by the BAC on the for print-outs (printed on the Bulletins issued:
day of the posting) of
PhilGEPS and at the website
Supplemental/Bid Bulletins a. on the PhilGEPS
of the procuring entity as posted on the PhilGEPS website?
concerned, if available and at their website.
AND
Implementing Rules and Regulations 10. Obtain from the BAC
(IRR) of RA 9184, as amended on Secretariat the print-outs b. the website of the
September 2, 2009: requested in 9. above. procuring entity
22.5.3 Any Supplemental/ Bid concerned?
Bulletin issued by the BAC shall
also be posted on the PhilGEPS or
[OR was changed to AND per
Annex A of GPPB Resolution No.
06-2009 dated September 30,
2009] the website of the procuring
entity concerned, if available. It
shall be the responsibility of all
those who have properly secured
the Bidding Documents to inquire
and secure Supplemental/Bid
Bulletins that may be issued by the
BAC. However, bidders who have
submitted bids before the issuance
of the Supplemental/Bid Bulletin
must be informed and allowed to
modify or withdraw their bids in
accordance with Section 26.1 of
the IRR.
5. To verify if the BAC 11. From the BAC records on Did the BAC inform
informed the bidders who submission of bids, identify the Bidders who have
have submitted bids before the bidders who have submitted bids before
submitted bids before the the issuance of the
the issuance of the
issuance of Supplemental/Bid
Supplemental/Bid Bulletin
Supplemental/Bid Bulletins. Bulletin of such
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and allowed to modify or issuance?
withdraw their bids.
Implementing Rules and Regulations 12. Go through copies of Were the bidders who
(IRR) of RA 9184, as amended on letters sent by the BAC to have submitted bids
September 2, 2009: these bidders and check if before the issuance of
22.5.3 However, bidders who they were informed and Supplemental/Bid
have submitted bids before the allowed to modify or Bulletins informed
issuance of the Supplemental/Bid withdraw their bids in and allowed to modify
Bulletin must be informed and accordance with Section or withdraw their bids
allowed to modify or withdraw their 26.1 of the IRR in accordance with
bids in accordance with Section Section 26.1 of the
26.1 of the IRR. IRR?

appropriate audit
resulting contract;
the contract;
c. etc.

appropriate audit
recommendations.

COA Circular No. 2009-006 dated to Management
the Use of the Rules and
Regulations on Settlement of
Accounts
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Commission on Audit
VIII. SUBMISSION, RECEIPT, OPENING OF BIDS
& PRELIMINARY EXAMINATION OF BIDS
FOR THE PROCUREMENT OF GOODS
Bids shall be submitted simultaneously in two (2) separate sealed envelopes and received
by the procuring entity on or before the deadline specified in the Invitation to Bid. Opening of Bids
shall be at the time, date and place specified in the Invitation to Bid.
1. To verify if the prescribed conditions and procedures in the submission and

receipt of bids were followed
2. To verify if the bids were submitted in the prescribed manner, specified forms and
contained all the required information
3. To verify if the prescribed conditions and procedures in the opening and

preliminary examination of bids were followed.

1. Minutes of the Bid Opening approved by the BAC;
2. Letters from bidders submitting their bids;
3. Bid documents submitted by the bidders;
4. Copy of portions of the BAC Secretariats Receiving logbook containing information on
receipt of bids;
6. Accomplished Checklist for the First Envelopes;
7. Accomplished Checklist for the Second Envelopes;
8. Abstract of Bids as Read;
9. BAC Resolution on the results of the opening and the preliminary evaluation of bids;
11. Invitations to the Observers with evidence of receipt.

of the
Answer
SUBMISSION OF BIDS FOR THE PROCUREMENT OF GOODS
1. To verify if the BAC 1. Go through the Minutes of the Did the BAC validate if
validated if the bidders Bid Opening and look for the bidders submit their
submitted their bids: information on the BACs bids through their duly
validation if the signatory to the authorized
a. through their duly
document submitting the bid is representative?
authorized representative, the bidders authorized
b. using the forms specified in representative as indicated in the
the Bidding Documents, Sworn statement .
c. in two (2) separate sealed
bid envelopes submitted
simultaneously
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Implementing Rules and Regulations 2. Go through the Minutes of the Did the BAC validate if
(IRR) of RA 9184, as amended on Bid Opening and look for the bidders submitted
September 2, 2009: information on the BACs their bids using the
25.1. Bidders shall submit their validation if each bidder adopted forms specified in the
bids through their duly authorized the forms specified in the Bidding Bidding Documents?
representative using the forms Documents.
specified in the Bidding
Documents in two (2) separate 3. Go through the records of the Did the bidders submit
sealed bid envelopes, and which BAC pertaining to the submission their bids in two (2)
shall be submitted simultaneously. of bids of each bidder and check separate sealed bid
The first shall contain the if the two (2) envelopes were envelopes submitted
technical component of the bid, submitted simultaneously. simultaneously?
including the eligibility
requirements under Section 23.1 4. Go through the Minutes of the
of this IRR, and the second shall Bid Opening and look for
contain the financial component of information pertaining to opening
the bid. of two (2) sealed envelopes of
each bidder.
2. To verify if the 5. Go through the records of the Did the BAC validate
BAC validated that in BAC pertaining to the submission that the bidders
modifying a bid: of bids of each bidder and check concerned submit their
if the submission of modifications bid modifications before
a. it was done before the were done before the deadline the deadline for the
deadline for the for the submission and receipt. submission and receipt?
submission and receipt of
6. Go through the Minutes of the Did the BAC validate if
bids,
Bid Opening and look for the bidders concerned
b. the original bid was not information on the BACs did not retrieve the
retrieved but another bid activities validating if: original bid but merely
a. modifications were marked as submitted another bid
equally sealed, properly
modification and stamped equally sealed, properly
identified, was submitted received by the BAC; and identified, and linked to
and linked to the original b. linked to the original bid (not the original bid and
bid and marked as a withdrawn). marked as a
modification, thereof, modification, thereof,
and stamped received by and stamped received
the BAC by the BAC?

September 2, 2009:
26.1. A bidder may 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 received after
the applicable deadline shall not
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be considered and shall be
returned to the bidder unopened.
26.2. A bidder may, through a
letter, 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 this IRR. 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.
RECEIPT OF BIDS FOR THE PROCUREMENT OF GOODS

1. To verify if the BAC 1. Check the receiving logbook of Did the BAC receive
received bids on the: the BAC on the date, time, and bids on the date and
a. date, place of receipt of bids and time specified in the
compare these with those in the Invitation to Bid?
b. time, and
Invitation to Bid
c. place
specified in the Invitation to Were the bids received
Bid by the BAC at the place
specified in the
Implementing Rules and Regulations Invitation to Bid?
September 2, 2009:
Were bids submitted
25.4. Bids shall be received by the
after the deadline for
BAC on the date, time, and place
submission of bids not
specified in the Invitation to Bid.
accepted?
25.5. Bids, including the eligibility
requirements under Section 23.1
of this IRR, submitted after the
deadline shall not be accepted by
the BAC.
2. To verify if the BAC 2. Count the number of days Did the BAC observe the
observed the maximum of 45 from the last day of posting of maximum of 45
calendar days from the last the Invitation to Bid up to the calendar days from the
deadline for submission and last day of posting of
day of posting of the
receipt of bids and compare with the Invitation to Bid up
Invitation to Bid up to the the 45-day maximum period. to the deadline for
deadline for submission and submission and receipt
receipt of bids of bids?

September 2, 2009:
25.4. Bids shall be received by the
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BAC on the date, time, and place
specified in the Invitation to
Bid/Request for Expression of
Interest. The following periods
from the last day of posting of the
Invitation to Bid/Request for
Expression of Interest up to the
submission and receipt of bids
shall be observed:
a) For Goods, a maximum period
of forty-five (45) calendar days.
b)
c)
OPENING & PRELIMINARY EXAMINATION OF BIDS FOR THE PROCUREMENT OF GOODS

1. To verify if the BAC 1. From the Office Order Was there a quorum of
observed quorum. creating the BAC, determine the the BAC?
number of BAC members and
Implementing Rules and Regulations identify the Chairman or Vice-
(IRR) of RA 9184, as amended on Chairman.
September 2, 2009:
12.3 Quorum 2. From the Minutes of Opening
A majority of the total BAC of Bids, check for the presence
composition as designated by the of the Chairman or Vice-
Head of the Procuring Entity shall Chairman and if majority of the
constitute a quorum for the BAC members or
transaction of business, provided that representatives/alternates
the presence of the Chairman or attended the proceedings.
Vice-Chairman shall be required.
2. To verify if the BAC opened 3. Compare the date and time of Did the BAC open the
the bids immediately after the opening of bids indicated in bids immediately after
the deadline for the the Minutes of the Opening of the deadline for the
Bids with the deadline for submission and receipt
submission and receipt of bids of bids?
bids and at the: stated in the Bidding Documents.
a. date, Did the BAC open the
b. time, and 4. Compare the date, time and bids on the date
c. place place of the opening of bids specified in the
specified in the Invitation to indicated in the Minutes of the Invitation to Bid?
Bid Opening of Bids with those
specified in the Invitation to Bid. Did the BAC open the
Implementing Rules and Regulations bids on the time
(IRR) of RA 9184, as amended on specified in the
September 2, 2009: Invitation to Bid?
29. Bid Opening
The BAC shall open the bids Did the BAC open the
immediately after the deadline for bids at the place
the submission and receipt of bids. specified in the
[GPPB Resolution No. 13-2009, Invitation to Bid?
dated 16 December 2009] The
time, date, and place of the
opening of bids shall be specified
in the Bidding Documents. The
bidders or their duly authorized
representatives may attend the
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opening of bids. The BAC shall
adopt a procedure for ensuring
the integrity, security, and
confidentiality of all submitted
bids. The minutes of the bid
opening shall be made available to
the public upon written request
and payment of a specified fee to
recover cost of materials.
3. To verify if the BAC/BAC 5. From the Minutes of Bid Did the BAC:
Secretariat read out and Opening, check for information
recorded during bid opening on the BACs reading out and a. read out and record
recording of withdrawn bids during bid opening
letters of withdrawal and
during the bid opening; checking letters of withdrawal of
returned to the bidder the of the date of submission of the bids?
envelope containing the withdrawal letter; and returning
corresponding withdrawn bid the withdrawn bid unopened. b. if the withdrawal of
unopened, either to the bid was made before
bidders representative if he 6. Also check for evidence of the the deadline for
is present or by registered return of the withdrawn bids submission and receipt
mail from acknowledged registered of bids, return the bids
mails. unopened to
Philippine Bidding Documents for the representatives of the
Procurement of Goods, 3rd edition bidders concerned
(October 2009) approved per GPPB present during the bid
Resolution No. 05-2009 dated 30 opening?
September 2009:
23. Modification and Withdrawal c. if the withdrawal of
of Bids bid was made before
23.1. The Bidder may modify its the deadline for
bid after it has been submitted; submission and receipt
provided that the modification is of bids, return
received by the Procuring Entity withdrawn bids
prior to the deadline prescribed unopened by registered
for the submission and receipt mail?
of bids. The Bidder shall not be
allowed to retrieve its original 7. From the Minutes of the Bid Did the BAC forfeit the
bid, but shall be allowed to Opening, check for information bid security and
submit another bid, equally on withdrawals of bids made recommend the
sealed, properly identified, after the deadline for submission imposition of sanctions
linked to its original bid, marked and receipt of bids up to the on bidders who
as TECHNICAL expiration of the period of bid withdrew their bids
MODIFICATION or FINANCIAL validity specified by the bidder in during the interval
MODIFICATION and stamped the financial bid form; and for between the deadline
received by the BAC. Bid information on forfeiture of bid for submission of bids
modifications received after the security and imposition of and the expiration of
applicable deadline shall not be sanctions on these bidders. the period of bid validity
considered and shall be specified by the Bidder
returned to the bidder on the Financial Bid
unopened. Form?
23.2. A Bidder may, through a
letter of withdrawal, withdraw
its bid after it has been
submitted, for valid and
justifiable reason; provided that
the letter of withdrawal is
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23.3. Bids requested to be

withdrawn in accordance with
ITB Clause 23.1, shall be
returned unopened to the
Bidders. A Bidder may also
express its intention not to
participate in the bidding
through a letter which should
reach and be stamped by the
BAC before the deadline for
A Bidder that withdraws its bid
shall not be permitted to submit
another bid, directly or
indirectly, for the same contract.
23.4. No bid may be modified
submission of bids. No bid may
be withdrawn in the interval
between the deadline for
submission of bids and the
expiration of the period of bid
validity specified by the Bidder
on the Financial Bid Form.
Withdrawal of a bid during this
interval shall result in the
forfeiture of the Bidders bid
security, pursuant to ITB Clause
18.5, and the imposition of
administrative, civil, and
criminal sanctions as prescribed
by RA 9184 and its IRR.
24. Opening and Preliminary

Examination of Bids
24.3 Letters of withdrawal
shall be read out and recorded
during bid opening, and the
envelope containing the
corresponding withdrawn bid
shall be returned to the Bidder
unopened. If the withdrawing
Bidders representative is in
attendance, the original bid and
all copies thereof shall be
returned to the representative
during the bid opening. If the
representative is not in
attendance, the bid shall be
returned unopened by
registered mail. The Bidder may
withdraw its bid prior to the
deadline for the submission and
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receipt of bids, provided that
the corresponding Letter of
Withdrawal contains a valid
authorization requesting for
such withdrawal, subject to
appropriate sanctions.
4. To verify if the BAC opened 8. From the Attendance Did the BAC open the
the first bid envelopes of the Record/Minutes of the Opening first bid envelopes of
bidders in public of Bids check if the participants the bidders in public?
include bidders and observers.
September 2, 2009:
30.1. The BAC shall open the first
bid envelopes of prospective
bidders in public to determine
each bidders compliance with the
documents required to be
submitted for eligibility and for the
technical requirements, as
prescribed in this IRR. 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
nondiscretionary pass/fail
criterion, as stated in the
Instructions to Bidders. 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 said first bid
envelope as passed
5. To verify if the BAC 9. Compare the Checklist with Did the BAC adopt a
determined compliance of the list of documents in the first Checklist for the first
each bidder with the envelope per Bidding envelope in accordance
Documents. with the list of
documents in the first
submitted in the first envelope per Bidding
envelope by checking the Documents?
bidder against a checklist of 10. Validate the entries Did the BAC determine
required documents to (pass/fail) in the Checklist with each prospective
ascertain if they are all the documents submitted by the bidders compliance
bidders in the first envelope (for with the documents
present, using a
presence or absence). required to be
nondiscretionary pass/fail submitted in the first
criterion, as stated in the envelope:
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Implementing Rules and Regulations a. Registration
(IRR) of RA 9184, as amended on certificate from SEC,
September 2, 2009: Department of Trade
30.1. The BAC shall open the first and Industry (DTI)
bid envelopes of prospective bidders for sole
in public to determine each bidders proprietorship, or
compliance with the documents CDA for
required to be submitted for cooperatives, or any
eligibility and for the technical proof of such
requirements, as prescribed in this registration as stated
IRR. For this purpose, the BAC shall in the Bidding
check the submitted documents of Documents?
each bidder against a checklist of
required documents to ascertain if b. In a Joint Venture,
they are all present, using a each partners
nondiscretionary pass/fail criterion, Registration
as stated in the Instructions to certificate from SEC,
Bidders. If a bidder submits the Department of Trade
required document, it shall be rated and Industry (DTI)
passed for that particular for sole
requirement. In this regard, bids proprietorship, or
that fail to include any requirement CDA for
or are incomplete or patently cooperatives, or any
insufficient shall be considered as proof of such
failed. Otherwise, the BAC shall registration as stated
rate the said first bid envelope as in the Bidding
passed. Documents?
25.2. The first envelope shall c. Mayors permit

contain the following technical issued by the city or
information/ documents, at the municipality where
least: the principal place of
a) For the procurement of goods: business of the
i) Eligibility requirements under prospective bidder is
Section 23.1 of this IRR; located?
ii) The bid security in the
prescribed form, amount and d. In a Joint Venture,
validity period; each partners
iii) Technical specifications, which Mayors permit
may include production/delivery issued by the city or
schedule, manpower municipality where
requirements, and/or after-sales the principal place of
service/parts, if applicable; and business of the
iv) Sworn statement by the prospective bidder is
prospective bidder or its duly located?
authorized representative in the
form prescribed by the GPPB as to
e. Statement of the
the following:
prospective bidder of
(1) It is not blacklisted or barred
all its ongoing and
from bidding by the GOP or any
completed
of its agencies, offices,
government and
corporations, or LGUs, including
private contracts,
including contracts
awarded but not yet
institution whose blacklisting
started, if any,
rules have been recognized by
whether similar or
the GPPB;
not similar in nature
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(2) Each of the documents and complexity to
submitted in satisfaction of the the contract to be
bidding requirements is an bid, within the
authentic copy of the original, relevant period as
complete, and all statements provided in the
and information provided Bidding Documents?
therein are true and correct;
(3) It is authorizing the Head of
the Procuring Entity or his duly e.1. In a Joint
authorized representative/s to Venture, any
verify all the documents partners?
submitted;
(4) The signatory is the duly
authorized representative of the f. The bidders audited
prospective bidder, and granted financial statements,
full power and authority to do, showing, among
execute and perform any and all others, the
acts necessary and/or to prospective bidders
represent the prospective bidder total and current
in the bidding, with the duly assets and liabilities,
notarized Secretarys Certificate stamped received
attesting to such fact, if the by the BIR or its duly
prospective bidder is a accredited and
corporation, partnership, authorized
cooperative, or joint venture; institutions, for the
(5) It complies with the disclosure preceding calendar
provision under Section 47 of year which should
the Act in relation to other not be earlier than
provisions of R.A. 3019; two (2) years from
(6) It complies with the the date of bid
responsibilities of a prospective submission?
or eligible bidder provided in the
PBDs; and f.1. In a Joint
(7) It complies with existing labor Venture, any
laws and standards, in the case partners?
of procurement of services.
23.1. For purposes of determining g. The bidders

the eligibility of bidders using the computation for its
criteria stated in Section 23.5 of this Net Financial
IRR, only the following documents Contracting Capacity
shall be required by the BAC, using (NFCC) or a
the forms prescribed in the Bidding commitment from a
Documents,: Universal or
a) Class A Documents Commercial Bank to
extend a credit line
Legal Documents in favor of the
i) Registration certificate from prospective bidder if
SEC, Department of Trade and awarded the
Industry (DTI) for sole contract to be bid
proprietorship, or CDA for (CLC)?
cooperatives, or any proof of
such registration as stated in g.1. In a Joint
the Bidding Documents. Venture, any
ii) Mayors permit issued by the partners?
city or municipality where the
principal place of business of
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the prospective bidder is h. Valid joint venture
located. Agreement (JVA), in
case the joint
Technical Documents
venture is already in
iii) Statement of the prospective
existence.
bidder of all its ongoing and
completed government and
In the absence of
private contracts, including
a JVA, duly notarized
contracts awarded but not yet
statements from all
started, if any, whether similar
the potential joint
or not similar in nature and
venture partners
complexity to the contract to be
stating that they will
bid, within the relevant period
enter into and abide
as provided in the Bidding
by the provisions of
Documents. The statement shall
the JVA in the
include all information required
instance that the bid
in the PBDs prescribed by the
is successful?
GPPB.
iv)
Financial Documents i. The bid security in
v) The prospective bidders the prescribed:
audited financial statements, (1) form?
showing, among others, the (2) amount?
prospective bidders total and (3) validity period?
current assets and liabilities,
stamped received by the BIR
or its duly accredited and j. Technical
authorized institutions, for the specifications, which
preceding calendar year which may include:
should not be earlier than two (1) production/
(2) years from the date of bid delivery
submission. schedule?
vi) The prospective bidders (2) manpower
computation for its Net Financial requirements?
Contracting Capacity (NFCC) or (3) after-sales
a commitment from a Universal service/parts, if
or Commercial Bank to extend a applicable?
credit line in favor of the
prospective bidder if awarded
the contract to be bid (CLC). k. Sworn statement by
b) Class B Document the prospective
bidder or its duly
Valid joint venture Agreement authorized
(JVA), in case the joint venture is representative in the
already in existence. In the form prescribed by
absence of a JVA, duly notarized the GPPB as to the
statements from all the potential following:
joint venture partners stating that (1) It is not
they will enter into and abide by blacklisted or
the provisions of the JVA in the barred from
instance that the bid is successful bidding by the
shall be GOP or any of its
included in the bid. Failure to agencies, offices,
enter into a joint venture in the corporations, or
event of a LGUs, including
contract award shall be ground for foreign
the forfeiture of the bid security. government/
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Each partner of the joint venture foreign or
shall submit the legal eligibility international
documents. The submission of financing
technical and financial eligibility institution whose
documents by any of the joint blacklisting rules
venture partners constitutes have been
compliance. recognized by the
GPPB?
27.1. All bids shall be
(2) Each of the
accompanied by a bid security,
documents
payable to the procuring entity
submitted in
concerned as a guarantee that the
satisfaction of the
successful bidder shall, within ten
bidding
(10) calendar days or less, as
requirements is an
indicated in the Instructions to
authentic copy of
Bidders, from receipt of the notice of
the original,
award, enter into contract with the
complete, and all
procuring entity and furnish the
statements and
performance security required in
information
Section 39 of this IRR, except when
provided therein
Section 37.1 of this IRR allows a
are true and
longer period. Failure to enclose the
correct?
required bid security in the form and
(3) It is authorizing
amount prescribed herein shall
the Head of the
automatically disqualify the bid
Procuring Entity or
concerned.
his duly authorized
27.2 The bid security shall be in representative/s to
an amount equal to a percentage of verify all the
the ABC in accordance with the documents
following schedule [as amended by submitted?
Annex A of GPPB Resolution No. 06- (4) The signatory is
2009 dated September 30, 2009]: the duly
authorized
Amount of Bid representative of
Security (Equal
Form of Bid Security
to Percentage of the prospective
the ABC) bidder, and
a) Cash or cashiers/ granted full power
managers check Two percent and authority to
issued by a Universal (2%)
or Commercial Bank. do, execute and
b) Bank draft/ perform any and
guarantee or all acts necessary
irrevocable letter of
credit issued by a
and/or to
Universal or represent the
Commercial Bank: prospective bidder
Provided, however, in the bidding,
that it shall be
confirmed or authentic- with the duly
ated by a Universal or notarized
Commercial Bank, if Secretarys
issued by a foreign
bank.
Certificate
c) Surety bond callable attesting to such
upon demand issued fact, if the
by a surety or prospective bidder
insurance company Five percent
duly certified by (5%) is a corporation,
Insurance Commission partnership,
as authorized to issue cooperative, or
such security.
joint venture?
(5) It complies with
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d) Any combination of Proportionate to the disclosure
the foregoing. share of form
with respect to
provision under
total amount of Section 47 of the
security Act in relation to
other provisions of
For biddings conducted by LGUs, the R.A. 3019?
prospective bidder may also submit (6) It complies with
bid securities in the form of the responsibilities
cashiers/managers check, bank of a prospective or
draft/guarantee, or eligible bidder
irrevocable letter of credit from other provided in the
banks certified by the BSP as PBDs?
authorized to issue such financial (7) It complies with
instrument. existing labor laws
and standards, in
27.3. The bid security shall be the case of
denominated in Philippine Pesos and procurement of
posted in favor of the procuring services?
entity.
28.1. Bids and bid securities shall

be valid for a reasonable period as
determined by the Head of the
Procuring Entity concerned, which
shall be indicated in the Bidding
Documents, but in no case shall the
period exceed one hundred twenty
(120) calendar days from the date of
the opening of bids.
Section 47. Disclosure of Relations

All bids shall be accompanied by a
sworn affidavit of the bidder that it is
not related to the Head of the
Procuring Entity, members of the
BAC, the TWG, and the BAC
Secretariat, the head of the PMO or
the end-user unit, and the project
consultants, by consanguinity or
affinity up to the third civil degree.
Failure to comply with the
aforementioned provision shall be a
ground for the automatic
disqualification of the bid in
consonance with Section 30 of this
IRR. For this reason, relation to the
aforementioned persons within the
third civil degree of consanguinity or
affinity shall automatically disqualify
the bidder from participating in the
procurement of contracts of the
procuring entity. On the part of the
bidder, this provision shall apply to
the following persons:
a) If the bidder is an individual or a
sole proprietorship, to the bidder
himself;
b) If the bidder is a partnership, to all
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its officers and members;
c) If the bidder is a corporation, to all
its officers, directors, and
controlling stockholders; and
d) If the bidder is a joint venture, the
provisions of items (a), (b), or (c)
of this Section shall
correspondingly apply to each of
the members of the said joint
venture, as may be appropriate.
6. To verify if the BAC opened 11. From the Checklists and Did the BAC open only
the second envelopes of the Minutes of the Bid Opening and the second envelopes of
bidders whose first envelopes of the first envelope identify the the bidders whose first
were rated passed on the same bidders who were rated passed envelopes were rated
day and determined compliance passed?
with the requirements using a

(IRR) of RA 9184, as amended on 12. From the Minutes of the Bid Did the BAC open the
September 2, 2009: Opening, check if the second second envelopes on
envelopes of the bidders who the same day when the
30.2 Immediately after
were rated passed was opened first envelopes were
determining compliance with the
by the BAC on the same day opened?
requirements in the first envelope,
when the first envelopes were
the BAC shall forthwith open the
opened.
second bid envelope of each
remaining eligible bidder whose
first bid envelope was rated
passed. The second envelope of
each complying bidder shall be
opened within the same day In
13. Compare the Checklist with Was the BACs Checklist
case one or more of the
the list of documents in the in accordance with the
requirements in the second
second envelope per Bidding list of documents in the
envelope of a particular bid is
Documents. second envelope per
missing, incomplete or patently
Bidding Document?
insufficient, and/or if the
submitted total bid price exceeds
the ABC, the BAC shall rate the bid
concerned as failed. Only bids
that are determined to contain all
the bid requirements for both
components shall be rated
14. Validate the entries Did the BAC determine
passed and shall immediately be
(pass/fail) in the Checklist with each bidders
considered for evaluation and
the documents submitted by compliance with the
comparison.
the bidders in the second documents required to
envelope (for presence or be submitted in the
25.3. The second envelope shall
absence). second envelope:
contain the financial
information/documents as (a) Financial Bid Form,
specified in the PBDs. which includes
a.1 bid prices?
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Philippine Bidding Documents for the a.2 bill of
Procurement of Goods, 3rd Edition quantities?
(October 2009) issued by the GPPB:
a.3 Price
Instruction to Bidders (ITB) 13.
Schedules?
Documents Comprising the Bid:
Financial Component
a.4 total bid price?
13.1 Unless otherwise stated in
the BDS, the financial component (b) If the bidder claims
of the bid shall contain the preference as a
following: Domestic Bidder or
(a) Financial Bid Form, which Domestic Entity, a
includes bid prices and the bill of certification from
quantities and the applicable Price the:
Schedules, in accordance with ITB
Clauses 15.1 and 15.4; DTI? or
(b) If the bidder claims preference
as a Domestic Bidder or Domestic SEC? or
Entity, a certification from the
DTI, SEC, or CDA issued in CDA?
accordance with ITB Clause 27
15. From the Minutes of Bid Did the BAC
---- Opening, Abstract of Bids as automatically disqualify
15.1 The Bidder shall complete Read, and relevant BAC bids higher than the
the appropriate Price Resolutions check if bids higher ABC?
than the ABC were automatically
Schedules included herein,
disqualified.
stating the unit prices, total
price per item, the total
amount and the expected
countries of origin of the
Goods to be supplied under
this Project.
----
15.4 Prices indicated on the

Price Schedule shall be entered
separately in the following
manner:
(a) For Goods offered from

within the Procuring Entitys
country:
(i) The price of the Goods

quoted EXW (ex works, ex
factory, ex warehouse, ex
showroom, or off-the-shelf, as
applicable), including all
customs duties and sales and
other taxes already paid or
payable:
(i.1) on the components and raw
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material used in the manufacture
or assembly of Goods quoted
ex works or ex factory; or
(i.2) on the previously

imported Goods of foreign
origin quoted ex warehouse,
ex showroom, or off-the-shelf
and any Procuring Entity
country sales and other taxes
which will be payable on the
Goods if the contract is
awarded.
(ii) The price for inland

transportation, insurance, and
other local costs incidental to
delivery of the Goods to their
final destination.
(iii) The price of other

(incidental) services, if any,
listed in the BDS.
(b) For Goods offered from

abroad:
(i) Unless otherwise stated in

the BDS, the price of the
Goods shall be quoted
Delivered Duty Paid (DDP) with
the place of destination in the
Philippines as specified in the
BDS. In quoting the price, the
Bidder shall be free to use
transportation through carriers
registered in any eligible
country. Similarly, the Bidder
may obtain insurance services
from any eligible source
country.
(ii) The price of other

(incidental) services, if any, are
listed in the BDS.
----
27. Domestic Preference

27.1 Unless otherwise stated in
the BDS, the Procuring Entity will
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grant a margin of preference for
the purpose of comparison of bids
in accordance with the following:
(a) The preference shall be

applied when (i) the lowest
Foreign Bid is lower than the
lowest bid offered by a
Domestic Bidder, or (ii) the
lowest bid offered by a non-
Philippine national is lower
than the lowest bid offered by
a Domestic Entity.
(b) For evaluation purposes, the
lowest Foreign Bid or the bid
offered by a non-Philippine
national shall be increased by
fifteen percent (15%).
(c) In the event that (i) the
lowest bid offered by a
Domestic Entity does not
exceed the lowest Foreign Bid
as increased, or (ii) the lowest
bid offered by a non-
Philippine national as
increased, then the Procuring
Entity shall award the
contract to the Domestic
Bidder/Entity at the amount
of the lowest Foreign Bid or
the bid offered by a non-
Philippine national, as the
case may be.
(d) If the Domestic
Entity/Bidder refuses to
accept the award of contract
at the amount of the Foreign
Bid or bid offered by a non-
Philippine national within two
(2) calendar days from receipt
of written advice from the
BAC, the Procuring Entity
shall award to the bidder
offering the Foreign Bid or the
non-Philippine national, as the
case may be, subject to post-
qualification and submission
of all the documentary
requirements under these
Bidding Documents.
27.2. A Bidder may be granted

preference as a Domestic Entity
subject to the certification from
the DTI (in case of sole
proprietorships), SEC (in case of
partnerships and corporations), or
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CDA (in case of cooperatives)that
the (a) sole proprietorship is a
citizen of the Philippines or
the partnership, corporation,
cooperative, or association is duly
organized under the laws of the
Philippines with at least seventy
five percent (75%) of its interest
or outstanding capital stock
belonging to citizens of the
Philippines, (b) habitually
established in business and
habitually engaged in the
manufacture or sale of the
merchandise covered by is bid,
and (c) the business has been in
existence for at least five (5)
consecutive years prior to the
advertisement and/or posting of
the Invitation to Bid for this
Project.
27.3. A Bidder may be granted

preference as a Domestic Bidder
subject to the certification from
the DTI that the Bidder is offering
unmanufactured articles, materials
or supplies of the growth of
production of the Philippines, or
manufactured articles, materials,
or supplies manufactured or to be
manufactured in the Philippines
substantially from articles,
materials, or supplies of the
growth, production, or
manufacture, as the case may be,
of the Philippines.
----
31.1.The ABC shall be the
upper limit or ceiling for
acceptable bid prices. If a bid
price, as evaluated and
calculated in accordance with
this IRR, is higher than the
ABC, the bidder submitting the
same shall be automatically
disqualified. There shall be no
lower limit or floor on the
amount of the award.
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IN CASE A BIDDER DETERMINED AS FAILED FILES A REQUEST FOR RECONSIDERATION
1. To verify if the Bidder 1. Count the number of days Did the BAC ensure that
determined as failed FROM the date of bid opening or the Bidder determined
submitted his request for date of receipt of the notice by as failed submitted
the concerned Bidder TO the their requests for
reconsideration within 3 days
date of receipt by the BAC reconsideration within 3
upon written notice or, if Secretariat of the letter-request days upon written
present at the time of bid for reconsideration (duly notice or, if present at
opening, upon verbal stamped received by the BAC the time of bid opening,
notification Secretariat) and compare with upon verbal
the 3-day maximum. notification?
Philippine Bidding Documents (PBDs)
for the Procurement of Goods, 3rd
Edition, (October 2009) approved by
2. From the Minutes of the Did the BAC evaluate if
the GPPB per GPPB Resolution No.
deliberation of the request for the failure was due to
06-2009 dated September 30, 2009:
reconsideration, look for the fault of the bidder?
24.7. A Bidder determined as information and finding if the
failed has three (3) calendar days failure was due to the fault of
upon written notice or, if present at the Bidder, and the if the BAC If in the affirmative, did
the time of bid opening, upon verbal decided not to grant the request. the BAC decide not to
notification within which to file a grant the request?
request or motion for
reconsideration with the BAC: 3. From the Minutes of the Did the BAC decide on
Provided, however, that the motion deliberation of the request for the request for
for reconsideration shall not be reconsideration, look for reconsideration within 7
granted if it is established that the information on the period within days from receipt
finding of failure is due to the fault which the BAC decided on the thereof?
of the Bidder concerned: Provided, request for reconsideration
further, that the BAC shall decide on from the date of receipt of the
the request for reconsideration request for reconsideration up to
within seven (7) calendar days from the date of decision (BAC
receipt thereof. If a failed bidder Resolution) on the decision
signifies his intent to file a request reached; and compare with the
for reconsideration, the BAC shall 7-day maximum period.
keep the bid envelopes of the said
failed Bidder unopened and/or duly
sealed until such time that the
request for reconsideration or
protest has been resolved.
INVOLVEMENT OF BAC OBSERVERS IN THE BID OPENING AND PRELIMINARY EXAMINATION OF

BIDS, INCLUDING EVALUATION AND DECISION ON MOTIONS FOR RECONSIDERATION
1. To verify if the BAC invited 1. From the Minutes of the BAC Did the BAC choose the
Observers: meeting on the selection of the Observers considering:
a. representing the COA, the Observer from the pool, check
specific relevant chamber- for information on the BACs a. one representing the
member of the Philippine evaluation in regard to: COA?
Chamber of Commerce and the selection of the
Industry, and a non- organization from which the b. One representing the
government organization Observer will be invited; specific relevant
(NGO) from the procuring knowledge, experience or chamber-member of
entitys Pool of Observers; expertise in procurement or in the Philippine
the subject matter of the Chamber of
b. that have:
contract to be bid; Commerce and
b.1. knowledge, experience or
no actual or potential conflict Industry?
expertise in procurement or
of interest in the contract to
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in the subject matter of the be bid; and c. One representing a
contract to be bid; conformed with other relevant non-government
b.2. no actual or potential criteria determined by the organization?
conflict of interest in the BAC.
contract to be bid; and d. With knowledge,
b.3. conformed with other experience or
relevant criteria determined expertise in
by the BAC; procurement or in
the subject matter of
c. at least 3 calendar days
the contract to be
prior to the start of the
bid?
activity
e. With no actual or
Implementing Rules and potential conflict of
Regulations (IRR) of RA 9184, as interest in the
amended on September 2, 2009: contract to be bid?
Section 13. Observers f. Conformed with

13.1. To enhance the transparency of other relevant
the process, the BAC shall, in all criteria determined
stages of the by the BAC?
addition to the representative of the 2. From certified copies of the Did the BAC invite the
COA, at least two (2) observers, who invitations to the Observers with Observers at least 3
shall not have the right to vote, to sit evidence of receipt, compare the days before the date of
in its proceedings where: date of receipt with the 3-day the start of activities?
a) At least one (1) shall come from a minimum requirement.
duly recognized private group in a
sector or discipline relevant to the
procurement at hand, for example:
i)
Philippine Chamber of Commerce
and Industry.
iii) and
b) The other observer shall come
from a non-government
organization (NGO).
13.2. The observers shall come from

an organization duly registered with
the Securities
and Exchange Commission (SEC) or
the Cooperative Development
Authority (CDA), and should meet the
following criteria:
expertise in procurement or in the
subject matter of the contract to
be bid;
conflict of interest in the contract
to be bid; and
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2. To verify if the Procuring 3. Based on the BACs Minutes Did the Procuring Entity
Entity considered the on the bid opening, preliminary consider the comments/
comments/observations of evaluation of bids, evaluation observations of the
and decision on motions for Observers?
the Observers
reconsideration, and the report
Implementing Rules and of the Observers check whether
Regulations (IRR) of RA 9184, as a deliberation was made on the
comments /observations of the
observers.
13.4. The observers shall have the
following responsibilities:
a) To prepare the report either
jointly or separately indicating
their observations made on the
procurement activities conducted
by the BAC for submission to the
Head of the Procuring Entity, copy
furnished the BAC Chairman. The
report shall assess the extent of
the BACs compliance with the
provisions of this IRR and areas of
improvement in the BACs
proceedings;
b) To submit their report to the
procuring entity and furnish a
copy to the GPPB and Office of the
Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract to
be bid.
13.5. Observers shall be allowed

access to the following documents
upon their request, subject to
signing of a confidentiality
agreement: (a) minutes of BAC
meetings; (b) abstract of Bids;
(c) post-qualification
summary report; (d) APP and
related PPMP; and (e) opened
proposals
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1. To verify the effects of Analyze the instances of non-
instances of non-compliance compliance to establish the Appropriate Audit Working Papers
on the: effects and develop appropriate
a. validity of the procurement
activities and outputs Also determine if appropriate
including the validity of the actions were taken by the
resulting contract; auditee in regard to instances of
non-compliance.
the contract; NOTE:
Also refer to the OFFENSES
c. etc. AND PENALTIES portion of this
and develop appropriate Audit Guide.

least three (3) calendar days before
the date of the procurement
stage/activity. The absence of
observers will not nullify the BAC
proceedings, provided that they
have been duly invited in
writing.
2. To verify the causes of Analyze the instances of non-

instances of non-compliance compliances to establish the Appropriate Audit Working Papers
and develop appropriate cause(s) and develop appropriate
Also determine if appropriate
actions were taken by the
auditee in regard to instances of
non-compliance.
NOTE:
AND PENALTIES portion of this
Audit Guide.

auditees Management the results of the audit/validation applicable
and transmit to Management
Accounts
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Commission on Audit
IX. BID EVALUATION FOR THE PROCUREMENT OF GOODS
The purpose of bid evaluation is to determine the Lowest Calculated Bid. This is done by
establishing the correct calculated prices of the bids and ranking in ascending order the total bid
prices as so calculated. The bid with the lowest price is the LCB.
1. To verify if the BAC adopted the required conditions and procedures in bid
evaluation
2. To verify if the BAC followed the required timeline in the conduct of bid evaluation.
Documents needed for the evaluation:

1. Minutes of Bid Opening;
2. Checklists for technical and financial envelopes;
4. BAC Resolution(s) on the preliminary examination of bids;
5. TWG report on the bid evaluation for determination of the bidder with the LCB, as
reviewed by the BAC;
6. Abstract of Bids as Calculated;
7. Minutes of the BAC meeting on bid evaluation;
8. Resolution of the BAC declaring the LCB;
10. Invitation letters to the Observers with evidence of receipt.

the Answer
1. To verify if the BAC 1. From the Minutes of Bid Did the BAC conduct
conducted detailed Opening, Checklists for detailed evaluation of
evaluation of all bidders technical and financial all bidders who
envelopes, Abstract of Bids passed in the
whose first envelope
as Read, and BAC preliminary
(technical component) Resolutions identify the examination of bids?
and second envelope bidders who were rated
(financial component) passed in all aspects and
were rated passed compare with the names of
the bidders included in the
Implementing Rules and bid evaluation (from the
Regulations (IRR) of RA 9184, as TWG report, as reviewed by
amended on September 2, 2009: the BAC, Minutes of the BAC
meeting on bid evaluation,
30.2. .Only bids that are and Resolution of the BAC
determined to contain all the bid declaring the LCB).
requirements for both
components shall be rated
passed and shall immediately
be considered for evaluation
and comparison.
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Commission on Audit
the Answer
2. To verify if the BAC 2. From the TWG report, as Did the BAC evaluate
considered completeness reviewed by the BAC, the completeness of
and arithmetical Minutes of the BAC meeting the financial
on bid evaluation, and component of the
corrections of the
Resolution of the BAC bids :
financial component of declaring the LCB, look for
the bids in the detailed the information on the For Goods offered
evaluation evaluation of completeness from within the
of financial component of Philippines:
Implementing Rules and the bids.
a. Item?
b. Description?
32.2.1 The BAC shall
immediately conduct a detailed
c. Country of Origin?
evaluation of all bids using non-
discretionary criteria in
d. Quantity?
considering the following:
(a) Completeness of the bid e. Unit Price EXW per
Unless the Instruction to item?
Bidders specifically allow
partial bids, bids not f. Cost of local labor,
addressing or providing all of raw material, and
the required items in the component?
Bidding Documents including,
where applicable, bill of g. Total price EXW
quantities, shall be considered per item?
non-responsive and, thus,
automatically disqualified. In h. Unit prices per
this regard, where a required item final
item is provided, but no price destination and
is indicated, the same shall be unit price of other
considered as non-responsive, incidental
but specifying a 0 (zero) for services?
the said item would mean
that it is being offered for free i. Sales and other
to the Government; and taxes payable per
(b) Arithmetical corrections item if Contract is
Consider computational errors awarded?
and omissions to enable
proper comparison of all j. Total price
eligible bids. It may also delivered Final
consider bid modifications it Destination?
expressly allowed in the
Bidding Documents [AS For Goods Offered
AMENDED BY GPPB from Abroad:
RESOLUTION NO. 06-2009
DATED SEPT 30, 2009] Any a. Item?
adjustment shall be calculated
in monetary terms to b. Description?
determine the calculated
prices. c. Country of
32.2.2. The BAC shall evaluate Origin?
all bids on an equal footing to
ensure fair and competitive bid d. Quantity?
comparison. For this purpose,
all bidders shall be required to e. Unit price CIF
include the cost of all taxes, port of entry
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the Answer
such as, but not limited to, (specified port)
value added tax (VAT), income or CIF named
tax, local taxes, and other fiscal place (specified
levies and duties which shall be border point or
itemized in the bid form and place of
reflected in the detailed destination)?
estimates. Such bids, including
said taxes, shall be the basis for f. Total CIF or CIF
bid evaluation and comparison. price per item?
g. Unit price
Delivered Duty
Unpaid (DDU)?
h. Unit price
Delivered Duty
Paid (DDP)?
i. Total Price
Delivered DDP?
Did the BAC consider

non-responsive and,
thus, automatically
disqualified bids not
addressing or
providing all of the
required items in the
Bidding Documents?

non-responsive and,
thus, automatically
disqualified bids that
did not indicate the
price for a required
item?
3. From the TWG report with Did the BAC evaluate

supporting documents and the arithmetical
duly reviewed by the BAC, accuracy of financial
Minutes of the BAC meeting components of bids in
on bid evaluation, and terms of:
Resolution of the BAC
declaring the LCB, look for a. computational
the information on the errors?
evaluation of arithmetical
accuracy of financial b. omissions?
component of the bids.
c. other bid
modification, if
allowed in the
Bidding
Documents?
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Commission on Audit
the Answer
3. To verify if the BAC 4. Analyze the TWG report, Did the BAC disqualify
disqualified bidders whose as reviewed by the BAC, bidders whose bids as
bids as calculated were Minutes of the BAC meeting calculated were
on bid evaluation, Abstract higher than the ABC?
higher than the ABC
of Bids as Calculated, and
Implementing Rules and Resolution of the BAC
Regulations (IRR) of RA 9184, as declaring the LCB, in regard
amended on September 2, 2009: to disqualified bidders whose
bids are higher than the
31.1 The ABC shall be the ABC.
upper limit or ceiling for
acceptable bid prices. If a bid
price, as evaluated and calculated
in accordance with this IRR, is
higher than the ABC, the bidder
submitting the same shall be
automatically disqualified. There
shall be no lower limit or floor on
the amount of the award.
4. To verify if the BAC 5. Check for completeness Did the BAC prepare
prepared the Abstract of of the information contained the Abstract of Bids
Bids as Calculated with the in the Abstract of Bids as as calculated with the
Calculated and if this was following information:
required information
signed by the members of
the BAC. a. Name of the
contract?
b. Location?
Section 32.3 After all bids
c. Time of bid
have been received, opened,
opening?
examined, evaluated, and ranked,
the BAC shall prepare the
d. Date of bid
corresponding Abstract of Bids.
opening?
.The Abstract of Bids shall
contain the following:
e. Place of bid
opening?
(a) Name of the contract and its
location, if applicable;
f. Names of bidders
(b) Time, date and place of bid
and their
opening; and
corresponding
(c) Names of bidders and their calculated bid
corresponding calculated bid prices
prices arranged from lowest
to highest, the amount of bid g. Calculated bid
security and the name of the prices arranged
issuing entity. from lowest to
highest?
h. Amount of bid
security?
i. Name of the issuing

entity?
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the Answer
j. Names and
signatures of the
Chairman and
members of the
BAC?
5. To verify if the BAC 6. Analyze the TWG report, Did the BAC declare
declared rank 1 in the as reviewed by the BAC, rank 1 in the Abstract
Abstract of Bids as Minutes of the BAC meeting of Bids as Calculated
on bid evaluation, Abstract as the Lowest
Calculated as the Lowest
of Bids as Calculated, and Calculated Bid (LCB)?
Calculated Bid (LCB)
Resolution of the BAC
declaring the LCB, in regard
Implementing Rules and to disqualified bidders whose
Regulations (IRR) of RA 9184, as bids are higher than the
amended on September 2, 2009: ABC.
32.2.4. Bids shall then be
ranked in the ascending order of
their total calculated bid prices,
as evaluated and corrected for
computational errors, and other
bid modifications, to identify the
Lowest Calculated Bid. Total
calculated bid prices, as
evaluated and corrected for
bid modifications, which exceed
the ABC shall be disqualified.
32.3. After all bids have been

received, opened, examined,
evaluated, and ranked, the BAC
shall prepare the corresponding
Abstract of Bids.
6. To verify if the BAC 7. Obtain a copy of the Did the BAC notify
notified the bidder with the notice issued by the BAC to the bidder with the
LCB the bidder with the LCB and LCB?
check for receipt by the
Implementing Rules and bidder.
34.2. Within three (3) calendar
days from receipt by the bidder
of the notice from the BAC that
the bidder has the Lowest
Calculated Bid or Highest Rated
Bid, the bidder shall submit the
following documentary
requirements to the BAC:

7. To verify if the BAC 8. From the Office Order Was there a quorum
observed quorum creating the BAC, determine of the BAC?
the number of BAC
Implementing Rules and members and identify the
Regulations (IRR) of RA 9184, as Chairman or Vice-Chairman.
12.3 Quorum 9. From the Minutes of Bid
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the Answer
A majority of the total BAC Evaluation, check for the
composition as designated by the presence of the Chairman or
Head of the Procuring Entity shall Vice-Chairman and if
constitute a quorum for the majority of the BAC
transaction of business, provided members or
that the presence of the Chairman representatives/alternates
or Vice-Chairman shall be required. attended the proceedings.
8. To verify if the BAC 10. From the Invitation to Did the BAC complete
completed the evaluation Bid and BAC Resolution the evaluation
process within seven (7) determine the number of process within seven
days from the deadline for (7) calendar days
calendar days from the
receipt of proposals and the from the Bid
deadline for receipt of completion of the bid Submission Deadline?
proposals evaluation.

32.4 The entire evaluation
process shall be completed
within seven (7) calendar days
from the deadline for receipt of
proposals.
INVOLVEMENT OF BAC OBSERVERS IN THE BID EVALUATION INCLUDING EVALUATION AND

DECISION ON MOTIONS FOR RECONSIDERATION
9. To verify if the BAC 11. From the Minutes of the Did the BAC choose
invited Observers: BAC meeting on the the Observers
a. representing the COA, selection of the Observer considering:
from the pool, check for
the specific relevant
information on the BACs a. one representing
evaluation in regard to: the COA?
the selection of the
Commerce and Industry,
organization from which b. One representing
and a non-government
the Observer will be the specific
organization (NGO) from
invited; relevant chamber-
the procuring entitys Pool
knowledge, experience or member of the
of Observers;
expertise in procurement Philippine
b. that have:
or in the subject matter Chamber of
b.1. knowledge, experience of the contract to be bid; Commerce and
or expertise in procurement no actual or potential Industry?
or in the subject matter of conflict of interest in the
the contract to be bid; contract to be bid; and c. One representing
b.2. no actual or potential conformed with other a non-government
conflict of interest in the relevant criteria organization?
contract to be bid; and determined by the BAC.
b.3. conformed with other d. With knowledge,
relevant criteria determined experience or
by the BAC; expertise in
c. at least 3 calendar days procurement or in
prior to the start of the the subject matter
activity of the contract to
be bid?
Regulations (IRR) of RA 9184, as e. With no actual or
amended on September 2, 2009: potential conflict
of interest in the
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Commission on Audit
the Answer
13. Observers contract to be bid?
13.1. To enhance the transparency
of the process, the BAC shall, in all f. Conformed with
stages of the procurement process, other relevant
invite, in addition to the criteria determined
representative of the COA, at least by the BAC?
two (2) observers, who shall not
have the right to vote, to sit in its
proceedings where: 12. From certified copies of Did the BAC invite the
a) At least one (1) shall come from the invitations to the observers at least 3
a duly recognized private group in Observers with evidence of days before the date
a sector or discipline relevant to receipt and the date of the of the bid evaluation?
the procurement at hand, for start of bid evaluation,
example: compare the period with the
i) 3-day minimum
ii) For goods, a specific relevant requirement.
Commerce and Industry.
iii) and
organization (NGO).
13.2. The observers shall come

from an organization duly
registered with the Securities
contract to be bid;
to be bid; and

before the date of the procurement
have been duly invited in writing.
10. To verify if the 13. Based on the BACs Did the Procuring
Procuring Entity considered Minutes on the bid Entity consider the
the comments/observations evaluation and the report of comments/
the Observers check observations of the
of the Observers
whether a deliberation was Observers?
made on the comments
/observations of the
observers.
13.4. The observers shall have
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Prepared by:
Commission on Audit
the Answer
the following responsibilities:
conducted by the BAC for
submission to the Head of the
Procuring Entity, copy furnished
the BAC Chairman. The report
shall assess the extent of the
BACs compliance with the
provisions of this IRR and areas
of improvement in the BACs
proceedings;
copy to the GPPB and Office of
the Ombudsman/Resident
then it is understood that
the bidding activity
conducted by the BAC
followed the correct
procedure; and
c) To immediately inhibit and
notify in writing the procuring
entity concerned of any actual
or potential interest in the
contract to be bid.

access to the following
documents upon their request,
subject to signing of a
confidentiality agreement: (a)
minutes of BAC meetings;
(b) abstract of Bids; (c)
post-qualification summary
report; (d) APP and related
PPMP; and (e) opened
proposals.

appropriate audit
and outputs including the Also determine if
validity of the resulting appropriate actions were
taken by the auditee in
contract;
regard to instances of non-
b. validity of any payment compliance.
of the contract;
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Commission on Audit
the Answer
NOTE:
c. etc. Also refer to the
and develop appropriate OFFENSES AND
audit recommendations PENALTIES portion of
this Audit Guide.
2009:
proceedings, provided that
they have been duly invited in
writing.

appropriate audit
appropriate audit
recommendations.
recommendations
Also determine if
appropriate actions were
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.

Accounts
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Prepared by:
Commission on Audit
X. POST-QUALIFICATION FOR THE PROCUREMENT OF GOODS
The Lowest Calculated Bid (LCB) shall undergo post-qualification in order to determine
whether the bidder concerned complies with and is responsive to all the requirements and
conditions as specified in the Bidding Documents.
1. To verify if the BAC adopted the required conditions and procedures in the conduct
of post-qualification
2. To verify if the BAC followed the required timeline in the conduct of post-qualification

1. Minutes of the BAC meetings on post-qualification;
2. Copy of the BAC Secretariats Receiving logbook indicating information on receipt of
the: a) Tax clearance, b) Latest income and business tax returns, c) Certificate of
PhilGEPS Registration; and d) Other appropriate licenses and permits required by law
and stated in the Bidding Documents, submitted by the bidder with the LCB;
3. Copy each of the documents submitted by the bidder with the LCB;
4. BAC Resolution disqualifying the bidder and forfeiting its bid security, if the bidder with
the LCB did not comply with the required submissions;
5. Documents evidencing the BACs validation of the veracity of the documents submitted
and the information thereon;
6. Copy of the BAC Resolution disqualifying the bidder and forfeiting its bid security, if the
BAC had a finding against the veracity of the documents/ information thereon;
7. TWG report on the post-qualification conducted, including supporting documents (e.g.
inspection reports), as reviewed by the BAC; evidencing:
7.1. validation of the authenticity of the documents submitted and information thereon;
7.2. validation of compliance of the goods offered with the requirements specified in the
Bidding Documents, duly supported with: inspection reports on the goods offered
and test results;
7.3. validation of the sufficiency of the bid security as to type, amount, form and
wording, validity period;
7.4. validation of compliance with the financial requirements of the LCB;
7.5. conduct of analysis and concluding on the post-qualification or disqualification of
the bidder, as the case may be;
8. TWG report(s) on the evaluation of the post-disqualified bidder(s) request for
reconsideration, as reviewed by the BAC;
9. Minutes of the post-qualification activities;
10. BAC Resolution declaring the LCRB;
11. Copy of the document approved by the HOPE extending the period for the post-
qualification process, if applicable;
13. Reports of the BAC Observers.
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Commission on Audit
the Answer
1. To verify whether the 1. From the records of Did the bidder with
bidder whose bid was the BAC, check the date the LCB submit
declared by the BAC as LCB when the bidder with the within 3 calendar
LCB submitted the: a) Tax days from receipt
submitted the following
clearance, b) Latest of the notice as
documents within 3 calendar income and business tax LCB:
days from its receipt of the returns, c) Certificate of
notice: PhilGEPS Registration; a. Tax Clearance?
a) Tax clearance; and d) Other appropriate
b) Latest income and licenses and permits
business tax returns; required by law and b. Latest income
c) Certificate of PhilGEPS stated in the Bidding and business tax
Registration; and Documents and compare returns?
this with the date of
d) Other appropriate licenses
receipt of the notice that
and permits required by
the bidder has the LCB. c. Certificate of
law and stated in the PhilGEPS
Bidding Documents. 2. Ask for copies of the Registration?
documents submitted
Implementing Rules and Regulations from the BAC Secretariat
(IRR) of RA 9184, as amended on and compare them with d. Other
September 2, 2009: the requirements. appropriate
34.2. Within three (3) calendar licenses and
days from receipt by the bidder of permits required by
the notice from the BAC that the law and stated in
bidder has the Lowest Calculated the Bidding
Bid or Highest Rated Bid, the Documents?
bidder shall submit the following
documentary requirements to the
BAC:
a) Tax clearance;
b) Latest income and business tax
returns;
c) Certificate of PhilGEPS
Registration; and
d) Other appropriate licenses and
permits required by law and
stated in the Bidding
Documents.
2. To verify if the BAC: 3. If based on the Did the BAC forfeit

2.1. determined the veracity validation conducted in 1. the bid security and
of the documents and 2. above, the disqualify the
submissions were found bidder for award
submitted and
to be incomplete and/or because of failure
2.2. forfeited the bid security
not on time, obtain a copy to submit the
and disqualified the of the BAC Resolution required
bidder for award for disqualifying the bidder documents on
reason that; and forfeiting its bid time?
a. the bidder failed to security.
submit the required
documents on time,
and/or 4. Obtain from the BAC Did the BAC forfeit
b. there was a finding Secretariat documents the bid security and
evidencing the BACs disqualify the
against the veracity of
validation of the veracity bidder for award
the documents/ of the documents because of a
information submitted and the finding against the
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Commission on Audit
the Answer
information thereon and veracity of the
check the results of such documents/
validation. information?
September 2, 2009:
34.2.Within three (3) calendar
If the BAC had a
days from receipt by the bidder of
finding against the
the notice from the BAC that the
veracity of the
bidder has the Lowest Calculated Bid
documents/ information
or Highest Rated Bid, the bidder
thereon, obtain a copy of
shall submit the following
the BAC Resolution
disqualifying the bidder
BAC:
and forfeiting its bid
a) Tax clearance;
security.
returns;
Registration; and
stated in the Bidding Documents.
Failure to submit the above
requirements on time or a finding
against the veracity of such shall be
ground for the forfeiture of the bid
security and disqualify the bidder for
award.
3. To verify if the BAC 5. Match the name of Did the BAC

conducted post-qualification the bidder with the LCB conduct post-
on the bidder with the Lowest as indicated in the BAC qualification on the
Resolution declaring the bidder with the
Calculated Bid (LCB)
LCB with the name of the Lowest Calculated
bidder indicated in the Bid (LCB)?
Post-Qualification Report.
September 2, 2009:
34.1 The Lowest Calculated Bid
shall undergo post-qualification in
order to determine whether the
bidder concerned complies with
and is responsive to all the
requirements and conditions as
specified in the Bidding Documents.
verified, validated, and Secretariat the TWG validate the
ascertained that the bidder report, as reviewed by the authenticity of the
BAC, evidencing validation Registration
with the LCB is:
of the authenticity of the: documents
submitted by the
a. a duly licensed Filipino a) DTI Registration bidder?
citizen/sole proprietor, or Certificate, duly supported
b. a Partnerships duly with:
the DTI-certified copy
organized under the laws of
of the Registration
the Philippines and of which
Certificate and
at least sixty percent (60%) DTI certificate that
of the interest belongs to the sole proprietor is
citizens of the Philippines, or a Filipino citizen
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the Answer
c. a Corporation duly (based on the
organized under the laws of application for
the Philippines, and of which registration filed by
the bidder with the
at least sixty percent (60%)
DTI),
of the outstanding capital if the bidder is a sole
stock belongs to citizens of proprietorship;
the Philippines, or
d. Cooperatives duly b. SEC registration and of
organized under the laws of the 60% Filipino
the Philippines, and of which ownership, duly
at least sixty percent (60%) supported with:
belongs to citizens of the the SEC-certified
copy of the
Philippines, or
Registration
e. Joint Venture - that Filipino
Certificate,
ownership or interest of the if the bidder is a
joint venture concerned shall partnership;
be at least sixty percent (60%).
c. SEC registration and of
Implementing Rules and the 60% Filipino
Regulations (IRR) of RA 9184, as ownership, duly
amended on September 2, 2009: supported with:
34.3. The post-qualification shall SEC-certified copy
verify, validate, and ascertain all of the Registration
statements made and documents Certificate and
submitted by the bidder with the SEC-certified copy
Lowest Calculated Bid/Highest of the Articles of
Rated Bid, using non-discretionary Incorporation
criteria, as stated in the Bidding if the bidder is a
Documents. These criteria shall corporation.
consider, but shall not be limited
to, the following: d. CDA registration and
a) Legal Requirements. To verify, of the 60% Filipino
validate, and ascertain licenses, ownership, duly
certificates, permits, and supported with:
agreements submitted by the CDA-certified copy
bidder, and the fact that it is not of the Registration
included in any blacklist as Certificate and
provided in Section 25.2 of this CDA certificate
IRR. For this purpose, the GPPB that at least sixty
shall maintain a consolidated file percent (60%)
of all blacklisted suppliers, belongs to citizens
contractors, and consultants. of the Philippines
if the bidder is a
cooperative
23.5.1. For the procurement of
e. Joint Venture individual
goods:
partners:
23.5.1.1. The following shall be
DTI, SEC, or CDA
eligible to participate in the
registrations and
bidding for the supply of goods:
of the 60%
Filipino ownership
a) Duly licensed Filipino citizens/
duly supported with
sole proprietorships;
the DTI-, SEC-, or
b) Partnerships duly organized
CDA-certified
under the laws of the Philippines
Certificate, as the case
and of which at least sixty percent
may be and DTI-, SEC-
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the Answer
(60%) of the interest belongs to , or CDA-certified
citizens of the Philippines; documents evidencing
c) Corporations duly organized ownership.
under the laws of the Philippines, 7. Compare the Did the BAC
and of which at least sixty percent data/documents in 6. validate if the
(60%) of the outstanding capital above with the documents bidder is a Filipino,
stock belongs to citizens of the submitted by the bidder for a sole
Philippines; to validate authenticity proprietorship?
d) Cooperatives duly organized and extent of Filipino
under the laws of the Philippines, ownership.
and of which at least sixty percent Did the BAC
(60%) belongs to citizens of the validate if the
Philippines; or Partnership or
e) Persons/ entities forming Corporation or
themselves into a joint venture, Cooperative or
i.e., a group of two (2) or more Joint Venture is at
persons/entities that intend to be least 60% Filipino
jointly and severally responsible or owned?
liable for a particular contract:
Provided, however, That Filipino
ownership or interest of the joint
venture concerned shall be at
least sixty percent (60%). For this
purpose, Filipino ownership or
interest shall be based on the
contributions of each of the
members of the joint venture as
specified in their JVA.
verified, validated, and Secretariat the TWG validate the
ascertained that the Mayors report, as reviewed by the authenticity of the
BAC, evidencing validation Mayors Permit
Permit submitted by the
of the authenticity of the submitted by the
bidder with the LCB was Mayors Permit and bidder?
issued by the city or whether it was issued by
municipality where the the city or municipality
principal place of business of where the principal place
the prospective bidder is of the business of the Did the BAC verify,
located bidder is located, duly validate, and
supported with: ascertain that the
Implementing Rules and The LGU-certified Mayors Permit
Regulations (IRR) of RA 9184, as copy of the Mayors submitted by the
permit, and bidder with the LCB
DTI-, SEC-, or CDA- was issued by the
34.3. The post-qualification shall
certified Registration city or municipality
verify, validate, and ascertain all
Certificate showing where the principal
statements made and documents
the bidders principal place of business of
submitted by the bidder with the
place of business the prospective
Lowest Calculated Bid/Highest
bidder is located?
Rated Bid, using non-discretionary
9. Compare the
criteria, as stated in the Bidding
data/documents in 8.
Documents. These criteria shall
above with the documents
submitted by the bidder
to, the following:
to validate authenticity
a) Legal Requirements. To verify,
and issuing entity is the
validate, and ascertain licenses,
city/municipality where
certificates, permits, and
the bidders principal
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the Answer
agreements submitted by the place of business is
bidder, and the fact that it is not located.
included in any blacklist as
provided in Section 25.2 of this
IRR. For this purpose, the GPPB
shall maintain a consolidated file
of all blacklisted suppliers,
contractors, and consultants.

23.1. For purposes of
determining the eligibility of
bidders using the criteria stated
in Section 23.5 of this IRR, only
the following documents shall be
required by the BAC, using the
forms prescribed in the Bidding
Documents,:
a) Class A Documents
Legal Documents
i) ---
ii) Mayors permit issued by the
the prospective bidder is
located.
6. To verify if the BAC 10. Secure from the BAC Did the BAC verify,
verified, validated, and Secretariat the TWG validate, and
ascertained compliance of the report, as reviewed by ascertain that the
the BAC, evidencing goods offered by
goods offered with the
validation of the goods the bidder with the
requirements specified in the
offered with the LCB complied with
Bidding Documents, requirements specified the requirements
including, where applicable: in the Bidding specified in the
a. Verification and/or Documents, duly Bidding Documents
inspection and testing of supported with: in terms of:
the goods/product,
b. after sales and/or a. inspection reports a. specifications of
maintenance capabilities, on the goods the item?
offered;
in applicable cases
b. test results b. maintenance
and/or after-sales
Implementing Rules and 11. Compare the results capabilities?
Regulations (IRR) of RA 9184, as of validation in 10
amended on September 2, 2009: above with the
34.3. The post-qualification shall requirements in the
verify, validate, and ascertain all Bidding Documents
to, the following:
a) Legal Requirements
b) Technical Requirements. To
determine compliance of
goods, infrastructure
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Prepared by:
Commission on Audit
the Answer
projects, or consulting
services offered with the
requirements specified in the
Bidding Documents, including,
where applicable:
i)
ii)
iii) Verification and/or
inspection and testing of the
goods/product, after sales
and/or maintenance
capabilities, in applicable
cases, for the procurement of
goods;
7. To verify if the BAC 11. From the TWG report Did the BAC
validated if the bidder with with supporting validate if the
the LCB is not blacklisted documents (e.g. bidder with the LCB
consolidated file of all was not
blacklisted suppliers blacklisted?
maintained by the GPPB)
duly reviewed by the BAC,
September 2, 2009:
and the Minutes of BAC
meetings, check for
information showing the
BACs validation if the
bidder with the LCB is not
Lowest Calculated Bid/Highest Rated
blacklisted.
Bid, using non-discretionary criteria,
as stated in the Bidding Documents.
These criteria shall consider, but
shall not be limited to, the following:

agreements submitted by the
bidder, and the fact that it is not
provided in Section 25.2 of
this IRR. For this purpose, the
GPPB shall maintain a
consolidated file of all
blacklisted suppliers,
8. To verify if the BAC 12. From the TWG report, Did the BAC
validated the bidders as reviewed by the BAC, validate the
compliance with the no the Minutes of BAC relationship of the
meetings/ deliberations bidder with the:
relationship provision
and BAC Resolution,
embodied in Section 47 of the
check for information a. HOPE?
Revised IRR of RA No. 9184, showing the BACs
i.e., that the bidder is not validation that: b. members of the
related by consanguinity or a. the individual bidder in BAC?
affinity up to the 3rd civil an individual or a sole
degree to the: proprietorship, is not c. members of the
a. HOPE, related to the persons TWG?
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b. members of the BAC, mentioned in Sec. 47,
c. members of the TWG, Amended IRR of RA d. members of the
d. members of the BAC 9184; BAC Secretariat?
b. all the officers and
Secretariat,
members of the bidder e. head of the
e. head of the Project partnership are not Project
Management Office (PMO), related to the persons Management
f. head of the end-user unit, mentioned in Sec. 47, Office (PMO)?
g. project consultants Amended IRR of RA
9184; f. head of the end-
Section 47. Disclosure of Relations c. all the officers, user unit?
All bids shall be accompanied by a directors, and
sworn affidavit of the bidder that it is controlling g. project
not related to the Head of the stockholders of the consultants?
Procuring Entity, members of the bidder corporation are
BAC, the TWG, and the BAC not related to the
Secretariat, the head of the PMO or persons mentioned in
the end-user unit, and the project Sec. 47, Amended IRR
consultants, by consanguinity or of RA 9184.
affinity up to the third civil degree.
Failure to comply with the
aforementioned provision shall be a 13. From the TWG report, Did the BAC
ground for the automatic as reviewed by the BAC, automatically
disqualification of the bid in the Minutes of BAC disqualify the
consonance with Section 30 of this meetings/deliberations bidder found to be
IRR. For this reason, relation to the and BAC Resolution, related within the
aforementioned persons within check for information 3rd civil degree of
the third civil degree of showing the BACs consanguinity or
consanguinity or affinity shall decision/action in case of affinity with the
automatically disqualify the violation with the no persons listed in
bidder from participating relationship provision. Section 47 of the
in the procurement of contracts Revised IRR of RA
of the procuring entity. On the 9184?
part of the bidder, this
provision shall apply to the following
persons:
himself;
its officers, directors, and
provisions of items (a), (b), or (c)
of this Section shall
9. To verify if the BAC 14. Request from the BAC 1. Did the BAC
verified, validated, and Secretariat, for the ascertain the
ascertained sufficiency of the document evidencing that sufficiency of the
the TWG ascertained the bid security as to:
bid security as to:
sufficiency of the bid
a. type,
security. a. type?
b. amount,
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Commission on Audit
the Answer
c. form and wording, and b. amount?
d. validity period.
c. form and word?
d. validity period?
Lowest Calculated Bid, using non-
discretionary criteria, as stated in
the Bidding Documents. These
criteria shall consider, but shall
not be limited to, the following:
a) Legal Requirements
b) Technical Requirements.
i)
ii)
iii)
iv) Ascertainment of the
sufficiency of the bid security
as to type, amount, form and
wording, and validity period;
10. To verify if the BAC 15. From the TWG report Did the BAC verify,
verified, validated, and duly reviewed by the BAC validate, and
ascertained if the Net with supporting ascertain the
documents from the financial
Financial Contracting
appropriate authorities requirements of the
Capacity (NFCC) is at least (e.g. certified true copy of LCB as to:
equal to the ABC or the Credit the financial statements
Line Certificate (CLC) in favor with the Income Tax a. CLC at least
of the prospective bidder if Return, bank that issued equal to 10% of
awarded the contract is at the CLC), the Minutes of the ABC.
least 10% of the ABC BAC
meetings/deliberations Or
Implementing Rules and Regulations and BAC Resolution,
(IRR) of RA 9184, as amended on check for information b. NFCC at least
September 2, 2009: showing the bidders: equal to the
34.3. The post-qualification shall ABC?
verify, validate, and ascertain all a. CLC must be at least
statements made and documents equal to 10% of the
submitted by the bidder with the ABC.
discretionary criteria, as stated in Or
criteria shall consider, but shall b. NFCC must be at least
not be limited to, the following: equal to the ABC
a) Legal Requirements .
b) Technical Requirements
c) Financial Requirements
To verify, validate and
ascertain the bid price proposal
of the bidder and, whenever
applicable, the required CLC in
the amount specified and over
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Prepared by:
Commission on Audit
the Answer
the period stipulated in the
Bidding Documents, or the
bidders NFCC to ensure that the
bidder can sustain the operating
cash flow of the transaction.
23.5.1.4. If the prospective bidder

submits a computation of its
NFCC, the NFCC must be at least
equal to the ABC to be bid,
calculated as follows:
NFCC = [(Current assets minus

current liabilities) (K)] 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
contract to be bid.
Where:
K = 10 for a contract duration
of one year or less, 15 for a
contract duration of more than
one year up to two years, and
20 for a contract duration of
more than two years.
If the prospective bidder
submits a CLC, the CLC must be
at least equal to ten percent
(10%) of the ABC to be bid. If
the CLC is issued by a foreign
Universal or Commercial Bank, it
shall be confirmed or
authenticated by a Universal or
Commercial Bank. For biddings
conducted by LGUs, the
prospective bidder may also
submit CLC from other banks
certified by the BSP as
authorized to issue such
financial instrument.
11. To verify if the BAC 16. From the post Did the LCB pass
declared the post-qualified qualification report of the post-qualification?
LCB as the Lowest Calculated TWG, as reviewed by the
BAC, check if the LCB
Responsive Bid (LCRB)
passed all the criteria for
Implementing Rules and Regulations post qualification.
September 2, 2009: 17. Match the name of Did the BAC
34.4. If the BAC determines that the LCRB as approved by declare the LCB as
the bidder with the Lowest the HOPE with the name the Lowest
Calculated Bid passes all the of bidder as indicated in Calculated
criteria for post-qualification, it the BAC resolution Responsive Bid
shall declare the said bid as the recommending LCRB. (LCRB)?
Lowest Calculated Responsive Bid,
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Prepared by:
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the Answer
and recommend to the Head of the
Procuring Entity the award of If Yes, proceed
contract to the said bidder at its to: AWARD OF
submitted bid price or its calculated CONTRACT.
bid price, whichever is lower, or in
the case of quality-based
evaluation procedure, submitted
bid price or its negotiated price, If No, proceed to
whichever is lower. the Audit Sub-
Objectives in
case of Post-
disqualification
of the bidder
with the LCB.
IN CASE OF POST-DISQUALIFICATION OF THE BIDDER WITH THE LOWEST CALCULATED BID

(LCB) FOR THE PROCUREMENT OF GOODS
1. To verify if the BAC, in 1. From the records of Did the BAC
case of post-disqualification the BAC Secretariat, immediately notify
of the LCB, immediately check for information on the LCB of the
the date of receipt by the post-
notified the LCB in writing of
post-disqualified bidder of disqualification?
the post-disqualification with
the notice and for the
the grounds for it. grounds for
disqualification indicated Did the BAC
Implementing Rules and Regulations thereon. indicate in the
(IRR) of RA 9184, as amended on notice the grounds
September 2, 2009: for post-
34.5. If, however, the BAC disqualification?
determines that the bidder with the
Lowest Calculated Bid fails the
criteria for post-qualification, it
shall immediately notify the said
bidder in writing of its post-
disqualification and grounds for it.
34.6. 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
Lowest Calculated Bid. .
2. To verify if the BAC 2. Look for the TWG Did the BAC
conducted and completed the report on the post- conduct and
post-qualification of the qualification of the second complete the post-
rank bidder as reviewed qualification of the
second rank bidder using the
by the BAC. second rank
same post-qualification
bidder?
process adopted for the LCB
3. Repeat the audit Did the TWG adopt
activities of sub-objective the same process
Implementing Rules and Regulations nos.4 to 10 above. of verifying,
(IRR) of RA 9184, as amended on validating and
September 2, 2009: 4. Analyze the post- ascertaining all
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the Answer
34.6. the BAC shall initiate and qualification reports of the statements made
complete the same post- TWG, as reviewed by the and documents
qualification process on the bidder BAC, for the LCB and the submitted by the
with the second Lowest Calculated second rank bidder to LCB and the
Bid. check whether the TWG second rank
adopted the same process bidder?
of verifying, validating
and ascertaining all
statements made and
documents submitted by
the LCB and the second
rank bidder.
5. From the post Did the second

qualification report of the rank bidder pass
TWG, as reviewed by the the post-
BAC, check if the second qualification?
rank bidder passed the
post qualification.
NOTE: If Yes, proceed

For each post- to the Audit Sub-
disqualification of the objective to
next-rank bidder, the verify if the
BAC is to repeat the BAC declared
post-qualification the post-
process until the LCRB qualified
is declared for award. second-rank
bidder as the
The related audit LCRB after a
activities are likewise to request for
be repeated. reconsideration
of the LCB
(first-rank,
second-rank,
or next-in-
rank, a the
case may be)
has been
denied
If No, proceed to
the Audit Sub-
Objectives in
case of Post-
disqualification
of the bidder
with the LCB.
3. To verify if the BAC 6. From the Minutes of Did the BAC
declared the post-qualified the BAC meeting, analyze declare the post-
second-rank bidder as the if the BAC declared the qualified second-
post-qualified second-rank rank bidder as the
LCRB after a request for
bidder as the LCRB after a LCRB after a
reconsideration of the LCB
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Prepared by:
Commission on Audit
the Answer
(first-rank) has been denied request for request for
reconsideration of the LCB reconsideration of
Implementing Rules and Regulations (first-rank) has been the LCB (first-rank)
(IRR) of RA 9184, as amended on denied. has been denied?
September 2, 2009:
34.6. Immediately after the BAC 7. Match the name of the
has notified the first bidder of its LCRB as approved by the
post-disqualification, and HOPE with the name of
notwithstanding any pending bidder as indicated in the
request for reconsideration BAC resolution
thereof, the BAC shall initiate and recommending the LCRB.
complete the same post-
qualification process on the bidder
with the second Lowest Calculated
Bid. 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 Lowest
Calculated Responsive Bid.
4. To verify if the BAC 8. Compute the number Did the BAC

completed the post- of days from the BAC complete the post-
qualification process in not Resolution declaring the qualification
LCB and the BAC process in not
more than seven (7) calendar
Resolution declaring the more than seven
days from the determination LCRB, and compare this (7) calendar days
of the LCB or if extended, with the 7-calenday-day from the
such extension was approved requirement. determination of
by the HOPE and not the LCB?
exceeding 30 calendar days 9. If the BAC completed
the post-qualification in If the BAC
34.8. The post-qualification more than seven (7) completed the
process shall be completed in not calendar days, secure a post-qualification in
more than seven (7) calendar copy of the document more than seven
days from the determination of approved by the HOPE (7) calendar days,
the Lowest Calculated Bid. In extending the period for was the extension
exceptional cases, the post- the post-qualification approved by the
qualification period may be process. HOPE?
extended by the Head of the
Procuring Entity, but in no case If the BAC
shall the aggregate period exceed completed the
thirty (30) calendar days. post-qualification in
more than seven
(7) calendar days,
was the extension
within the 30-
calendar day
maximum?
5. To verify if the BAC invited 10. From the Minutes of Did the BAC choose
Observers: the BAC meeting on the the Observers
a. representing the COA, the selection of the Observer considering:
specific relevant chamber- from the pool, check for
member of the Philippine information on the BACs a. one
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Commission on Audit
the Answer
Chamber of Commerce and evaluation in regard to: representing the
Industry, and a non- the selection of the COA?
government organization organization from
(NGO) from the procuring which the Observer b. One
entitys Pool of Observers; will be invited; representing the
b. that have: knowledge, experience specific relevant
b.1. knowledge, experience or or expertise in chamber-
expertise in procurement or in procurement or in the member of the
the subject matter of the subject matter of the Philippine
contract to be bid; contract to be bid; Chamber of
b.2. no actual or potential no actual or potential Commerce and
conflict of interest in the conflict of interest in Industry?
contract to be bid; and the contract to be bid;
and c. One
b.3. conformed with other
conformed with other representing a
relevant criteria determined by
relevant criteria non-government
the BAC;
determined by the organization?
c. at least 3 calendar days BAC.
prior to the Post- d. With
qualification knowledge,
experience or
expertise in
procurement or
September 2, 2009:
in the subject
matter of the
contract to be
13.1. To enhance the transparency of
bid?
the process, the BAC shall, in all
stages of the
e. With no actual
or potential
addition to the representative of the
conflict of
COA, at least two (2) observers, who
interest in the
shall not have the right to vote, to sit
contract to be
in its proceedings where:
bid?
a) At least one (1) shall come from a
f. Conformed with
other relevant
criteria
i)
determined by
the BAC?
and Industry.
11. From certified copies Did the BAC invite
iii) and
of the invitations to the the observers at
Observers with evidence least 3 days before
of receipt, compare the the date of the
organization (NGO).
date of receipt with the 3- post-qualification?
day minimum
requirement.
the Securities
following criteria:
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Prepared by:
Commission on Audit
the Answer
be bid;
to be bid; and


instances of non-compliance non-compliance to Appropriate Audit Working Papers
on the: establish the effects and
resulting contract; Also determine if
b. validity of any payment to taken by the auditee in
be made on the basis of regard to instances of
the contract; non-compliance.
c. etc.
and develop appropriate NOTE:
audit recommendations Also refer to the
OFFENSES AND
Implementing Rules and PENALTIES portion of
Regulations (IRR) of RA 9184, as this Audit Guide.

instances of non-compliance non-compliances to Appropriate Audit Working Papers
and develop appropriate establish the cause(s) and
recommendations.
Also determine if
regard to instances of
non-compliance.
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Prepared by:
Commission on Audit
the Answer
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

results of the
COA Circular No. 2009-006 dated audit/validation and
September 15, 2009 re- Prescribing transmit to Management
Accounts
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Prepared by:
Commission on Audit
XI. AWARD OF CONTRACT FOR THE PROCUREMENT OF GOODS
1. To verify if the conditions and procedures for the award of contract were adhered to by
the procuring entity
2. To verify if the award was made within the prescribed period
3. To verify if the conditions/requirements, procedures and timelines for entering into and
approval of the contract were adhered to by the procuring entity

1. Minutes of the BAC meeting on post-qualification;
2. BAC Resolution declaring the LCRB and recommending award, approved by the HOPE with
the following supporting documents:
a. Abstract of Bids,
b. Duly approved delivery schedule and Cost Estimates,
c. Document issued by appropriate entity authorizing the procuring entity to incur
obligations for a specified amount,
d. Other pertinent documents required by existing laws, rules and/or the procuring entity
concerned.
3. Notice of Award signed by the HOPE, with date of release to and receipt by the winning
bidder;
4. Copy of the bid security of the winning bidder stamped received by the BAC Secretariat;
5. Copy of the portions of the receiving records of the BAC, with information on the date of
submission of the Joint Venture Agreement (JVA), if the winning bidder is a Joint Venture;
and the date of posting of the performance security;
6. Copy of the performance security posted by the winning bidder;
7. Copy of the complete set of contract documents duly signed and approved by higher
authorities;
8. Copy of the policy and schedule of approving authorities;
9. Evidences of postings at the PhilGEPS and the procuring entitys websites;
10. Evidences of postings at the conspicuous place at the premises of the procuring entity;
11. Copy of the document with the approval of the contract by higher authorities;
12. Copy of the document with the HOPEs disapproval of the award and the justifications
thereto, duly received by the BAC;
13. In case of disapproval of the BACs recommendation for award, copy of the document
with the HOPEs instructions on the steps to be adopted by the BAC.
14. Copy of the Minutes of the BAC meeting on the selection of the Observer from the
pool;
15. Copy of the reports of the BAC Observers.

Audit Criteria Audit Question Yes No Particulars
Audit Activities
of the
Answer
1. To verify if the BAC 1. Compare the LCRB Did the BAC
recommended the bidder determined by the BAC in its recommend to the
with the Lowest Calculated deliberations (per Minutes of HOPE the award of
the BAC meeting) with the contract to the
Responsive Bid (LCRB) or
LCRB recommended for award bidder with LCRB?
Single Calculated Responsive in the BAC Resolution.
Bid (SCRB), if lone, to the
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Prepared by:
Commission on Audit
Audit Activities
of the
Answer
HOPE for award
.
September 2, 2009:
37.1.1. The BAC shall recommend
to the Head of the Procuring
Entity the award of contract to the
bidder with the Lowest Calculated
Responsive Bid or the Single
Calculated Responsive Bid after
the post qualification process has
been completed.
To facilitate the approval of the
award, the BAC shall submit the
following supporting documents to
the Head of the Procuring Entity:
a) Resolution of the BAC
recommending award;
b) Abstract of Bids;
c) Duly approved program of
work or delivery schedule, and
Cost Estimates;
d) Document issued by
appropriate entity authorizing the
procuring entity to incur
obligations for a specified amount;
and
e) Other pertinent documents
required by existing laws, rules
and/ or the procuring entity
concerned.
2. To verify if the BAC 2. From the BAC Chairmans Did the BAC submit
submitted the following letter for the HOPE submitting the following
documents to the HOPE with the results and the documents documents to the
pertaining to the HOPE with the
the recommendation for
recommendation, duly recommendation
award: received by the Office of the for award:
a. Resolution of the BAC HOPE, look for information on
recommending award; the documents submitted. a. Resolution of
b. Abstract of Bids; the BAC
c. Duly approved delivery recommending
schedule and Cost award?
Estimates;
d. Document issued by b. Abstract of
Bids?
appropriate entity
authorizing the procuring
c. Duly approved
entity to incur delivery
obligations for a specified schedule and
amount; and Cost
e. Other pertinent Estimates?
documents required by
existing laws, rules and/
or the procuring entity d. Document
issued by
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Prepared by:
Commission on Audit
Audit Activities
of the
Answer
concerned appropriate
entity
Implementing Rules and Regulations authorizing the
(IRR) of RA 9184, as amended on procuring
September 2, 2009: entity to incur
37.1.1. The BAC shall recommend obligations for
to the Head of the Procuring a specified
Entity the award of contract to the amount?
bidder with the Lowest Calculated
Responsive Bid or the Single e. Other pertinent
Calculated Responsive Bid after documents
the post qualification process has required by
been completed. existing laws,
rules and/or
To facilitate the approval of the the procuring
award, the BAC shall submit the entity
following supporting documents to concerned?
recommending award;
Cost Estimates;
appropriate entity authorizing
the procuring entity to incur
amount; and
concerned.
3. To verify if the HOPE, or 3. Determine the number of Did the HOPE

his/her duly authorized days from the date of receipt approve the BAC
official, approved the LCRB by the HOPE of the recommendation
recommendation for award to for award within
recommended by the BAC for
the date of approval and the 7-calendar-day
award within 7 calendar
compare with the 7-day or 15- period (or 15-
days from the date of receipt day period. calendar-day period
of the recommendation from for GOCCs/GFIs)?
the BAC (15 calendar days
for GOCCs/GFIs)
September 2, 2009:
37.1.2. Within a period not

exceeding seven (7) calendar days
from the date of receipt of the
recommendation of the BAC, the
Head of the Procuring Entity shall
approve or disapprove the said
recommendation.
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Prepared by:
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Audit Activities
of the
Answer
4. In case of approval, to 4. Compare the name of the Was the Notice of
verify if the Notice of Award LCRB recommended by the Award immediately
was immediately issued to BAC and approved by the issued to the bidder
HOPE (per BAC Resolution with the Lowest
the bidder with the Lowest
declaring the LCRB and Calculated
Calculated Responsive Bid
recommending award, Responsive Bid as
as recommended by the BAC approved by the HOPE) with recommended by
and approved by the HOPE the name of the bidder- the BAC and
awardee in the Notice of approved by the
Implementing Rules and Regulations Award. HOPE?
September 2, 2009: 5. Compare the date of release
37.1.3. In case of approval, the of the Notice of Award with
Head of the Procuring Entity shall the date of approval of the
immediately issue the Notice of BAC Resolution recommending
Award to the bidder with the the award.
Lowest Calculated Responsive Bid.
In the event the Head of the
Procuring Entity shall disapprove
such recommendation, such
disapproval shall be based only on 6. Compare the date of the Was the award
valid, reasonable, and justifiable release of the Notice of Award made within the bid
grounds to be expressed in with the expiry date of the bid validity period of
writing, a copy furnished the BAC. validity period. the bid security?
37.1.5. Contract award shall be
made within the bid validity period
provided in Section 28 of this IRR
Annex C Period of Action on

Procurement Activities
5. To verify if the BAC 7. From the notices to the Did the BAC notify
notified all the losing bidders losing bidders, look for the all the losing
within the 7 calendar day date of its receipt and bidders within the 7
compare with the 7-day or 15- calendar day or 15
period (same period provided
day requirement. calendar day period
for the HOPE to approve/
(same period
disapprove the BACs
8. Also compare the names of provided for the
Resolution)
the losing bidders notified with HOPE to approve/
Implementing Rules and Regulations those appearing in the disapprove the
(IRR) of RA 9184, as amended on Abstract of Bids as Read. BACs Resolution)?
September 2, 2009:

recommendation. In the case of
GOCCs and GFIs, the period
provided herein shall be fifteen
(15) calendar days. Within the
same period provided herein the
BAC shall notify all losing bidders
of its decision.
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Prepared by:
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Audit Activities
of the
Answer
6. To verify if the BAC posted 9. Access the PhilGEPS website Did the BAC post
the Notice of Award within 3 and the website of the the Notice of
days from its issuance at the: procuring entity, and conduct Award:
inspection of the area where a. within 3 days
a. PhilGEPS website,
the Notice of Award is to be from its issuance
b. website of the procuring
posted on the 3rd day from the at the PhilGEPS
entity, and issuance of the Notice of website?
c. any conspicuous place in Award to the winning bidder.
the premises of the b. within 3 days
procuring entity. from its issuance
at the website of
Implementing Rules and the procuring
Regulations (IRR) of RA 9184, as entity? And
c. within 3 days
37.1.6. The BAC, through the
from its issuance
Secretariat, shall post, within
at any
three (3) calendar days from its
conspicuous
issuance, the Notice of Award in
place in the
the PhilGEPS, the website of the
premises of the
procuring entity, if any, and any
procuring entity?
conspicuous place in the premises
of the procuring entity.
7. To verify if the procuring 10. From the receiving records Did the bidder
entity observed the following of the BAC, compare the date submit the JVA
conditions for the execution of submission of the Joint within ten (10)
Venture Agreement (JVA) with calendar days from
of the contract:
the required 10 days from receipt of the
a) Submission of valid joint receipt of the Notice of Award. notice of award?
venture agreement, if
applicable, within 10 11. From the receiving records
days from receipt of the of the BAC, compare the date Was the
Notice of Award by the of posting of the performance performance
winning Joint Venture security with the required 10 security posted
bidder, days from receipt of the Notice within ten (10)
b) Posting of performance of Award; also compare with calendar days from
the date of the signing of the receipt by the
security within ten (10)
contract. winning bidder of
calendar days from
the Notice of Award
receipt by the winning 12. Compare the amount, & prior to the
bidder of the Notice of currency, form, issuing entity, signing of the
Award & prior to the and validity period of the contract?
signing of the contract in performance security posted
the required amount, by the winning bidder with the Was the
currency, form, issuing requirements of Sec 39.2 of performance
entity, and valid until the the Revised IRR of RA 9184. security posted in
the:
issuance by the procuring
a. right amount?
entity of the final
certificate of acceptance, b. right currency?
c) Signing of the contract
within the same ten (10) 13. Compare the date of c. right form?
day period provided that signing of the contract with
all the documentary the required 10-day period d. right issuing
requirements are from receipt of the Notice of entity?
complied with, Award.
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d) Approval by higher e. right validity
authority, if required, period?
within 15 days from 14. Compare the signatory
(approval) in the contract with Was the contract
receipt (25 days for
the authorized signatory as signed within 10
GOCCs)
required by relevant calendar days from
regulations/policies and as receipt of the
Implementing Rules and Regulations shown by a copy of a valid Notice of Award by
(IRR) of RA 9184, as amended on appointment or office order. the winning bidder?
September 2, 2009:
37.1.4. Notwithstanding the If further approval
issuance of the Notice of Award, 15. Compare the date of by higher authority
award of contract shall be subject approval of the contract by is required, was the
to the following conditions: higher authority with the 15- contract approved
a) Submission of the following day-period from receipt (25 by appropriate
documents within the days for GOCCs). approving authority
prescribed period: or his/her duly
i) Valid JVA, if applicable, authorized
within ten (10) calendar representative?
days from receipt by the
bidder of the notice from Was the contract
the BAC that the bidder has approved by higher
the Lowest Calculated authority within 15
Responsive Bid, as the case calendar days?
may be; or (25 calendar days
ii) .. for GOCCs)?
b) Posting of performance
security in accordance with
Section 39 of this IRR;
c) Signing of the contract as
this IRR;
d) Approval by higher authority,
if required, as provided in
Section 37.3 of this IRR.
39. Performance Security

39.1. To guarantee the faithful
performance by the winning
bidder of its obligations under the
contract in accordance with the
Bidding Documents, it shall post a
performance security prior to the
signing of the contract.
39.2. The performance security
shall be in an amount equal to a
percentage of the total contract
price in accordance with the
following schedule:
[AS AMENDED UNDER GPPB
RESOLUTION NO. 06-2009 DATED 30
SEPTEMBER 2009]
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Form of Amount of
Performance Performance
Security Security (Equal
to Percentage
of the Total
Contract Price
a) Cash, cashiers/
managers check
issued by a
Universal or
Commercial Bank Two percent
b) Bank draft/ (2%)
guarantee or
credit issued by a
Universal or
Commercial Bank;
Provided, however,
that it shall be
confirmed or
authenticated by a
Universal or
Commercial Bank,
if issued by a
foreign bank.
c) Surety bond Five percent
callable upon (5%)
demand issued by
a surety or
insurance company
duly certified by
the Insurance
Commission as
authorized to issue
such security.
d) Any combination Proportionate
of the foregoing. to share of
form with
respect to total
amount of
security
37.2. Contract Signing

37.2.1. The winning bidder shall
post the required Performance
Security and enter into contract
with the procuring entity within
ten (10) calendar days from
receipt by the winning bidder of
the Notice of Award.
37.2.2. The procuring entity shall
enter into contract with the
winning bidder within the same
ten (10) day period provided that
all the documentary requirements
are complied with.
37.3. Contract Approval by

Higher Authority
When further approval of higher
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authority is required, the
approving authority for the
contract or his duly authorized
representative shall be given
maximum of fifteen (15) calendar
days from receipt thereof to
approve or disapprove it.
38.3. If no action on the contract

is taken by the Head of the
Procuring Entity or the appropriate
approving authority within the
periods specified in this IRR, the
contract concerned shall be
deemed approved: Provided,
however, That 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.
invited Observers: BAC meeting on the selection the Observers
a. representing the COA, the of the Observer from the considering:
specific relevant chamber- pool, check for information
member of the Philippine on the BACs evaluation in a. one
Chamber of Commerce and regard to: representing the
Industry, and a non- the selection of the COA?
government organization organization from which the
(NGO) from the procuring Observer will be invited; b. One
entitys Pool of Observers; knowledge, experience or representing the
expertise in procurement or specific relevant
b. that have:
in the subject matter of chamber-
b.1. knowledge, experience
the contract to be bid; member of the
or expertise in procurement or
no actual or potential Philippine
in the subject matter of the
conflict of interest in the Chamber of
contract to be bid;
contract to be bid; and Commerce and
b.2. no actual or potential conformed with other Industry?
conflict of interest in the relevant criteria determined
contract to be bid; and by the BAC. c. One
b.3. conformed with other representing a
relevant criteria determined non-government
by the BAC; organization?
prior to the start of the d. With knowledge,
activity experience or
expertise in
Implementing Rules and Regulations procurement or
(IRR) of RA 9184, as amended on in the subject
September 2, 2009: matter of the
contract to be
bid?
of the process, the BAC shall, in all
e. With no actual
stages of the
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procurement process, invite, in or potential
addition to the representative of the conflict of
COA, at least two (2) observers, who interest in the
shall not have the right to vote, to contract to be
sit in its proceedings where: bid?
duly recognized private group in a f. Conformed with
sector or discipline relevant to the other relevant
procurement at hand, for example: criteria
i) determined by
ii) For goods, a specific relevant the BAC?
Commerce and Industry. 17. From certified copies of the Did the BAC invite
iii) and invitations to the Observers the observers at
b) The other observer shall come with evidence of receipt, least 3 days from
from a non-government compare the date of receipt the date of the bid
organization (NGO). with the 3-day minimum evaluation?
requirement.
the Securities
be bid;
to be bid; and

9. To verify if the Procuring 18. Based on the Minutes of Did the Procuring
Entity considered the BACs meetings and the report Entity consider the
comments/observations of of the Observers check comments/
whether a deliberation was observations of the
the Observers
made on the Observers?
Implementing Rules and Regulations comments/observations of the
(IRR) of RA 9184, as amended on observers.
September 2, 2009:
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Head of the Procuring Entity,
copy furnished the BAC
Chairman. The report shall assess
the extent of the BACs
compliance with the provisions of
this IRR and areas of
proceedings;
procedure; and
potential interest in the contract
to be bid.

minutes of BAC meetings; (b)
abstract of Bids; (c) post-
qualification summary report;
(d) APP and related PPMP;
and (e) opened proposals.
10. To verify if the contract 19. Obtain from the BAC Are the contract
is complete Secretariat or the Project documents
Management Office or the complete,
Implementing Rules and Regulations consisting of the
Office responsible for
(IRR) of RA 9184, as amended on following:
project implementation/
September 2, 2009: a) Contract
contract execution for a Agreement;
37.2.3. The following documents
shall form part of the contract: copy of the complete set of b) Bidding
a) Contract Agreement; documents comprising the Documents;
b) Bidding Documents; contract and compare with c) Winning bidders
c) Winning bidders bid, including the requirements. bid, including the
the Eligibility requirements, Eligibility
Technical and Financial requirements,
Proposals, and all other Technical and
documents/statements Financial
submitted; Proposals, and all
d) Performance Security; other
e) Credit line in accordance with documents/statem
the provisions of this IRR, if ents submitted;
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applicable; d) Performance
f) Notice of Award of Contract; Security;
and e) Credit line in
g) Other contract documents that accordance with
may be required by existing the provisions of
laws and/or the procuring entity this IRR, if
concerned in the Bidding applicable;
Documents, f) Notice of Award
of Contract; and
g) Other contract
documents that
may be required by
existing laws
and/or the
procuring entity
concerned in the
Bidding
Documents, such
as the construction
schedule and S-
curve, manpower
schedule,
construction
methods,
equipment
utilization schedule,
construction safety
and health program
approved by the
Department of
Labor and
Employment, and
PERT/CPM for
infrastructure
projects?
IN CASE OF DISAPPROVAL BY THE HOPE OF THE BACS RECOMMENDATION FOR AWARD
1. In case of disapproval by 1. If the HOPE disapproved the In case of
the HOPE, verify if the: recommendation for award, disapproval by the
a. grounds for such were look for the document HOPE of the BACs
indicating the grounds for such recommendation,
expressed in writing and
with evidence of receipt of a did the HOPE
a copy furnished to the
copy thereof by the BAC. express the
BAC, and grounds for such
b. written instructions on the and furnished a
subsequent steps to be copy to the BAC?
adopted were given to 2. Also look for the document
the BAC indicating the instructions In case of
given by the HOPE on the disapproval by the
Implementing Rules and Regulations subsequent steps to be HOPE of the BACs
(IRR) of RA 9184, as amended on adopted by the BAC. recommendation,
September 2, 2009: did the HOPE give
37.1.3. In case of approval, the instructions to the
Head of the Procuring Entity shall BAC on the
immediately issue the Notice of subsequent actions
Award to the bidder with the to be adopted?
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Lowest Calculated Responsive
Bid. In the event the Head of the
disapproval shall be based only on
valid, reasonable, and justifiable
grounds to be expressed in
writing, a copy furnished the BAC.
Generic Procurement Procedures for

Goods, June 2006, published by the
GPPB:
How is a contract awarded?

5. In case of disapproval of
the recommendation of award
the HOPE shall state the
reasons for disapproval and
instruct the BAC on the
subsequent actions to be
adopted.
IN CASE OF FAILURE, REFUSAL, OR INABILITY BY THE WINNING BIDDER TO SUBMIT

DOCUMENTS AND ENTER INTO CONTRACT - FOR THE PROCUREMENT OF GOODS
1. To verify if the BAC: 1. From the records of the Did the BAC
a. disqualified, BAC: disqualify the
b. forfeited the bid security documenting the fact- winning bidder
finding to establish if the who, through his
of and
winning bidder was fault, failed,
c. recommended the
responsible for his failure, refused or was
imposition of sanctions to refusal, or inability to: (a) unable to:
the winning bidder who, to submit the documents a. submit the
through his fault, failed, required under Section documents
refused or was unable: 37.1 of the Revised IRR of required under
RA 9184, or (b) to make Section 37.1 of
a. to submit the documents good its bid by entering the Revised
required under Section into a contract with the IRR of RA
37.1 of the Revised IRR procuring entity, or (c) 9184?
of RA 9184, or post the required or
b. to make good its bid by Performance Security b. to make good its
entering into a contract within the period bid by entering
stipulated in the Revised into a contract
with the procuring entity,
IRR of RA 9184 or in the with the
or
Bidding Documents; procuring
c. post the required documenting the entity?
Performance Security deliberations/evaluation or
within the period conducted and the c. post the required
stipulated in the Revised decisions arrived at; Performance
IRR of RA 9184 or in the documenting the Security within
Bidding Documents recommendations made to the period
the HOPE, stipulated in
Implementing Rules and look for information on the: the Revised
disqualification of the said IRR of RA
Regulations (IRR) of RA 9184, as bidder, 9184 or in the
amended on September 2, 2009: forfeiture of the bid Bidding
40.1. If the bidder with the Lowest security and Documents?
Calculated Responsive Bid/Highest
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Rated Responsive Bid or the recommendation of the
bidder with the Single imposition of sanctions to Did the BAC forfeit
Calculated/Rated Responsive Bid, the winning bidder. the bid security of
fails, refuses or is unable to the winning bidder
submit the documents required who, through his
under Section 37.1 of this IRR or fault, failed,
to make good its bid by entering refused or was
into a contract with the procuring unable to:
entity or post the required a. submit the
Performance Security within the documents
period stipulated in this IRR or in required under
the Bidding Documents, the bid Section 37.1 of
security shall be forfeited and the the Revised
appropriate sanctions provided in IRR of RA
this IRR and existing laws shall be 9184?
imposed, except where such or
failure, refusal or inability is b. to make good its
through no fault of the said bid by entering
bidder. into a contract
with the
procuring
entity?
or
c. post the required
Performance
Security within
the period
stipulated in
the Revised
IRR of RA
9184 or in the
Bidding
Documents?
Did the BAC

recommend the
imposition of
sanctions to the
winning bidder
who, through his
fault, failed,
refused or was
unable to:
a. submit the
documents
required under
Section 37.1 of
the Revised
IRR of RA
9184?
or
b. to make good its
bid by entering
into a contract
with the
procuring
entity?
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or
Performance
Security within
the period
stipulated in
the Revised
IRR of RA
9184 or in the
Bidding
Documents?
2. To verify if the BAC, after 2. From the records of the Did the BAC, after
disqualifying the winning BAC, look for information on disqualifying the
bidder who, due to his fault, the disqualification of the winning bidder
winning bidder who, due to his who, due to his
refused, failed, or was
fault, refused, failed, or was fault, refused,
unable to enter into contract,
unable to enter into contract, failed, or was
post the required post the required performance unable to enter into
performance security, or security, or submit other contract, post the
submit other required required documents within the required
documents within the time time stipulated. performance
stipulated, initiated and security, or submit
completed the post- Look also for information on other required
qualification process on the the conduct of post- documents within
qualification on the bidder with the time stipulated,
bidder with the second
the second Lowest Calculated initiate and
Lowest Calculated Bid Bid. complete the post-
qualification
Implementing Rules and Regulations process on the
(IRR) of RA 9184, as amended on bidder with the
September 2, 2009: second Lowest
40.2. In the case of the failure, Calculated Bid?
refusal or inability of the bidder NOTE:
with the Lowest Calculated For the audit on the Post-
Responsive Bid/Highest Rated Qualification for the
Responsive Bid to submit the Procurement of Goods
documents required under Section conducted by the BAC,
37.1 of this IRR or to enter into perform the audit activities
contract and post the required pertaining to these
Performance Security, as provided procurement activities in
in this Section, the BAC shall another part of this Guide.
disqualify the said bidder, and
shall initiate and complete the
post-qualification process on the
bidder with the second Lowest
Calculated Bid/
bidder with the Single the disqualification of the winning bidder with
winning bidder with the SCRB the SCRB who, due
who, due to his fault, refused, to his fault,
(SCRB) who, due to his fault, failed, or was unable to enter refused, failed, or
refused, failed, or was into contract, post the required was unable to enter
unable to enter into contract, performance security, or into contract, post
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post the required submit other required the required
performance security, or documents within the time performance
submit other required stipulated. security, or submit
other required
documents within the time
Look also for information on documents within
stipulated, declared the
the declaration of the bidding the time stipulated,
bidding a failure and a failure and the conduct of a
conducted a re-bidding with re-bidding with re- a. declare the
re-advertisement and/or advertisement. bidding a failure?
posting, as provided for in
Sections 21 and 25 of the and
Revised IRR of RA 9184 b. conduct a re-
bidding with re-
Implementing Rules and Regulations advertisement
(IRR) of RA 9184, as amended on and/or posting?
September 2, 2009:
40.3. In the case of failure, refusal
or inability of the bidder with the NOTE:
Single Calculated/Rated For the audit on the Failure
Responsive Bid to submit the of Bidding for the
documents required under Section Procurement of Goods and on
37.1 of this IRR or to enter into the Competitive/Public
contract and post the required Bidding for the Procurement
Performance Security, as provided of Goods, perform the audit
in this Section, the BAC shall activities pertaining to these
disqualify the said bidder, and procurement activities in
shall declare the bidding a failure other parts of this Guide.
and conduct a re-bidding with re-
advertisement and/or posting, as
provided for in Sections 21 and 25
of this IRR. Should there occur
another failure of bidding after the
conduct of the contracts re-
bidding, the procuring entity
concerned may enter into a
negotiated procurement.

appropriate audit
outputs including the Also determine if appropriate
validity of the resulting actions were taken by the
auditee in regard to instances
contract;
of non-compliance.
the contract; NOTE:
c. etc. AND PENALTIES portion
and develop appropriate of this Audit Guide.
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writing.

appropriate audit
recommendations.

of non-compliance.
NOTE:
AND PENALTIES portion
of this Audit Guide.

Accounts
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XII. FAILURE OF BIDDING DECLARED BY THE B.A.C.
A. AUDIT OBJECTIVE:
To verify if the conditions/requirements, procedures for the declaration of failure of bidding

were adhered to by the procuring entity

1. Documentary evidences that no bids were received;
2. Documentary evidences that all prospective bidders were declared ineligible;
3. Documentary evidences that all bids failed to comply with all the bid requirements;
4. Documentary evidences that all bids failed post-qualification;
5. Documentary evidences that the bidder with the Lowest Calculated Responsive Bid refused,
without justifiable cause, to accept the award of contract, and no award was made in
accordance with Section 40 of the RA 9184 and Revised IRR;
7. BAC Resolution declaring the bidding a failure;
8. Minutes of the BAC meetings with information on the review and evaluation conducted on the:
(a) terms, (b) conditions, (c) specifications, and (d) cost estimates and the
recommendations/decisions made possible revisions/adjustments;
9. Approved revised Bidding Documents;
10. Revised Approved Budget for the Contract (ABC);
11. Records of the re-bidding;
12. Copy of the Minutes of the BAC meeting on the selection of the Observer from the pool;
13. Copy of reports of the BAC Observers.
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1. To verify if the BAC 1. From the Minutes of BAC Did the BAC declare a
declared a failure of bidding meetings and other records, failure of bidding for
for reason that: look for information that: reason that:
a) No bids were received; a) No bids were
a) No bids were received; or
b) All prospective bidders received?
b) All prospective bidders were declared ineligible;
were declared ineligible; or c) all bids failed to comply b) All prospective
c) All bids failed to comply with all the bid bidders were
with all the bid requirements, declared ineligible?
requirements, or d) all bids failed post-
d) all bids failed post- qualification, or
qualification, or d) the bidder with the Lowest c) All bids failed to
e) the bidder with the Lowest Calculated Responsive Bid comply with all the
refused, without justifiable bid requirements?
cause, to accept the award
refused, without justifiable
of contract, and no award or
cause, to accept the award was made in accordance d) all bids failed post-
of contract, and no award with Section 40 of the RA qualification?
was made in accordance 9184 and Revised IRR.
with Section 40 of the RA or
9184 and Revised IRR e) the bidder with the
Lowest Calculated
. Responsive Bid
refused, without
September 2, 2009:
justifiable cause, to
35.1. The BAC shall declare the accept the award of
bidding a failure when: contract, and no
a) No bids are received; award was made in
b) All prospective bidders are accordance with
declared ineligible; Section 40 of the RA
c) All bids fail to comply with all the 9184 and Revised
bid requirements or fail post- IRR?
qualification, or, in the case of
consulting services, there is no
successful negotiation; or
d) The bidder with the Lowest
Calculated Responsive Bid/Highest
Rated Responsive Bid refuses,
without justifiable cause, to accept
the award of contract, and no
award is made in accordance with
Section 40 of the Act and this IRR.
2. To verify if the BAC 2. From the minutes of the Did the BAC determine
determined the reason for the BAC meetings held for the the reason for the failed
failed bidding by conducting a purpose, look for information bidding by conducting a
on the review and evaluation mandatory review and
mandatory review and
conducted on the: (a) terms, evaluation of the:
evaluation of the : (b) conditions, (c)
a. terms, specifications, and (d) cost a. terms in the Bidding
b. conditions, estimates and the Documents?
c. specifications, recommendations/decisions
d. cost estimates made possible b. conditions in the
in the Bidding Documents revisions/adjustments. Bidding Documents?
Implementing Rules and Regulations c. specifications in the

(IRR) of RA 9184, as amended on Bidding Documents?
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September 2, 2009:
35.2. In order to determine the d. cost estimates?
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.
3. To verify if the BAC and the 3. From the minutes of the Did the BAC and the
concerned units/officials of BAC meetings held for the concerned units/officials
the procuring entity, revised purpose and other records of of the procuring entity,
the procuring entity, look for revised the following as
the following as a result of
information on the a result of the review
the review and evaluation
revisions/adjustments made on and evaluation
conducted: the (a) terms, (b) conditions, conducted:
a. terms, (c) specifications, (d) ABC and
b. conditions, approvals made thereon. a. terms in the Bidding
c. specifications, Documents?
d. Approved Budget for the
Contract (ABC); b. conditions in the
had them approved; and Bidding Documents?
conducted a re-bidding with
c. specifications in the
re-advertisement and/or Bidding Documents?
posting
d. cost estimates?
September 2, 2009:
4. From the records of the Did the BAC conduct a
35.3. Based on its findings, the BAC look for information on re-bidding?
BAC shall revise the terms, the re-bidding conducted.
conditions, and specifications, and if
necessary, adjust the ABC, subject
to the required approvals, and
conduct a re-bidding with re-
provided for in Section 21.2 of this
IRR
35.4. All bidders who have NOTE:

initially responded to the Invitation For the audit on the re-
to Bid/Request for Expression of bidding conducted perform
Interest and have been declared the audit using the portion of
eligible or short listed in the previous this Guide on Competitive/
biddings shall be allowed to submit Public Bidding for the
new bids. The BAC shall observe the Procurement of Goods.
same process and set the new
periods according to the same rules
followed during the previous
bidding(s).
4. To verify if the BAC invited 5. From the Minutes of the Did the BAC choose the
Observers: BAC meeting on the selection Observers considering:
a. representing the COA, the of the Observer from the
specific relevant chamber- pool, check for information a. one representing the
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Answer
member of the Philippine on the BACs evaluation in COA?
Chamber of Commerce and regard to:
Industry, and a non- the selection of the b. One representing the
government organization organization from which the specific relevant
(NGO) from the procuring Observer will be invited; chamber-member of the
entitys Pool of Observers; knowledge, experience or Philippine Chamber of
b. that have: expertise in procurement or Commerce and
b.1. knowledge, experience or in the subject matter of Industry?
expertise in procurement or in the contract to be bid;
the subject matter of the no actual or potential c. One representing a
contract to be bid; conflict of interest in the non-government
b.2. no actual or potential contract to be bid; and organization?
conflict of interest in the conformed with other
contract to be bid; and relevant criteria determined d. With knowledge,
by the BAC. experience or expertise
in procurement or in the
the BAC;
contract to be bid?
prior to the start of the e. With no actual or
activity potential conflict of
interest in the contract
to be bid?
September 2, 2009:
f. Conformed with other
Section 13. Observers relevant criteria
13.1. To enhance the transparency of determined by the BAC?
stages of the 6. From certified copies of the Did the BAC invite the
procurement process, invite, in invitations to the Observers observers at least 3
addition to the representative of the with evidence of receipt, days from the date of
COA, at least two (2) observers, who compare the date of receipt the bid evaluation?
shall not have the right to vote, to sit with the 3-day minimum
in its proceedings where: requirement.
i)
and Industry.
iii) and
organization (NGO).

the Securities
following criteria:
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be bid;
to be bid; and


appropriate audit
including the validity of the Also determine if appropriate
resulting contract; actions were taken by the
b. validity of any payment to of non-compliance.
the contract;
NOTE:
c. etc. Also refer to the OFFENSES
and develop appropriate AND PENALTIES portion
audit recommendations of this Audit Guide.

writing.

appropriate audit
recommendations.

of non-compliance.
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NOTE:

Accounts
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Prepared by:
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XIII. FAILURE OF BIDDING DECLARED BY THE HOPE
A. AUDIT OBJECTIVE:
To verify if the conditions/requirements for the declaration of failure of bidding were adhered
to by the procuring entity

Documents on the declaration of failure of bidding by the HOPE with supporting
documents on the existence of the grounds used to justify the said declaration that:
1. there was prima facie evidence of collusion between appropriate public officers or
employees of the procuring entity, or
3. there was prima facie evidence of collusion between or among the bidders
themselves,
4. there was prima facie evidence of collusion between a bidder and a third party, or
5. there was prima facie evidence of any act which restricted, suppressed or nullified
competition, or
6. the BAC was found to have failed in following the prescribed bidding procedures, or
7. the award of the contract will not redound to the benefit of the GOP, for justifiable
and reasonable grounds such as the physical and economic conditions have
significantly changed so as to render the project no longer economically, financially,
or technically feasible, as determined by the Head of the Procuring Entity, or
and reasonable grounds such as the project is no longer necessary as determined
by the Head of the Procuring Entity, or
and reasonable grounds such as the source of funds for the project has been
withheld or reduced through no fault of the procuring entity.

of the
Answer
1. To verify if the HOPE 1. From the documents on the Did the HOPE declare
declared a failure of bidding for declaration of failure of bidding a failure of bidding
reason that: by the HOPE, look for for reason that:
information on the reason for
a. the funds/allotment for the such declaration. a. the
funds/allotment
program/project/activity
for the
has been withheld or
. program/project/a
reduced through no fault of ctivity has been
the procuring entity; withheld or
b. there is prima facie evidence reduced through
of collusion between: no fault of the
b.1. appropriate public procuring entity?
officers or employees of or
the procuring entity, or b. there was prima
facie evidence of
b.2. between the BAC and
collusion between
any of the bidders , or
appropriate public
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Prepared by:
Commission on Audit
of the
Answer
b.3. among the bidders officers or
themselves, or employees of the
b.4. a bidder and a third procuring entity?
Or
party,
c. there was prima
including any act which
facie evidence of
restricts, suppresses or collusion between
nullifies or tends to restrict, the BAC and any
suppress or nullify of the bidders?
competition; or
or d. there was prima
c. the BAC is found to have facie evidence of
failed in following the collusion between
or among the
prescribed bidding
bidders
procedures; themselves?
or Or
d. the award of the contract e. there was prima
will not redound to the facie evidence of
benefit of the GOP, for collusion between
justifiable and reasonable a bidder and a
grounds such as: (i) if the third party?
physical and economic Or
f. there was prima
conditions have significantly
facie evidence of
changed so as to render the
any act which
project no longer restricted,
economically, financially, or suppressed or
technically feasible, as nullified
determined by the Head of competition?
the Procuring Entity; (ii) if or
the project is no longer g. the BAC was
necessary as determined by found to have
failed in following
the Head of the Procuring
the prescribed
Entity; and (iii) if the source bidding
of funds for the project has procedures?
been withheld or reduced or
through no fault of the h. the award of the
procuring entity. contract will not
redound to the
Implementing Rules and Regulations benefit of the
(IRR) of RA 9184, as amended on GOP, for justifiable
September 2, 2009: and reasonable
Section 41. The Head of the grounds such as
Procuring Entity reserves the right to the physical and
reject any and all bids, declare a economic
failure of bidding, or not award the conditions have
contract in the following situations: significantly
a) If there is prima facie evidence of changed so as to
collusion between appropriate public render the project
officers or employees of the no longer
procuring entity, or between the BAC economically,
and any of the bidders, or if the financially, or
collusion is between or among the technically
bidders themselves, or between a feasible, as
bidder and a third party, including determined by the
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Prepared by:
Commission on Audit
of the
Answer
any act which restricts, suppresses Head of the
or nullifies or tends to restrict, Procuring Entity?
suppress or nullify competition; Or
b) If the BAC is found to have failed in i. the award of the
following the prescribed bidding contract will not
procedures; or redound to the
c) For any justifiable and reasonable benefit of the
ground where the award of the GOP, for justifiable
contract will not redound to the and reasonable
benefit of the GOP, as follows: (i) if grounds such as
the physical and economic the project is no
conditions have significantly changed longer necessary
so as to render the project no longer as determined by
economically, financially, or the Head of the
technically feasible, as determined Procuring Entity?
by the Head of the Procuring Entity; Or
(ii) if the project is no longer j. the award of the
necessary as determined by the contract will not
Head of the Procuring Entity; and redound to the
(iii) if the source of funds for the benefit of the
project has been withheld or GOP, for justifiable
reduced through no fault of the and reasonable
procuring entity. grounds such as
the source of
GPPB Circular 01-2009 dated 20 funds for the
January 2009 project has been
withheld or
Section 4.9
reduced through
Pursuant to Section 41 of the IRR-A
no fault of the
of R.A. 9184, the procuring entity
procuring entity?
reserves the right to declare a failure
of bidding if the funds/allotment for
the program/project/activity has
been withheld or reduced through
no fault of the procuring entity.
For transparency, procuring entities

shall ensure that their bid
documents expressly reserves their
right to reject bids, declare a failure
of bidding, and not to award the
contract without incurring any
liability if the funds/allotment for
said program/project/activity has
no fault of its own. They are also
encouraged to emphasize this
reservation clause during pre-bid
conference or submission of bids.
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Prepared by:
Commission on Audit
of the
Answer
instances of non-compliance on compliance to establish the Appropriate Audit Working Papers
the: effects and develop
appropriate audit
b. validity of any payment to be of non-compliance.
contract;
c. etc.
and develop appropriate audit NOTE:
recommendations Also refer to the OFFENSES
Implementing Rules and of this Audit Guide.
13.3. Observers shall be invited at least
three (3) calendar days before the date
of the procurement stage/activity. The
absence of observers will not nullify
the BAC proceedings, provided that
writing.

and develop appropriate audit cause(s) and develop
appropriate audit
recommendations
recommendations.

of non-compliance.
NOTE:
3. To communicate the results Prepare the appropriate audit/

of the audit with the auditees validation document reflecting Audit Observation Memorandum (AOM), if
Management the results of the applicable
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Prepared by:
Commission on Audit
ALTERNATIVE METHODS OF
PROCUREMENT FOR GOODS
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Prepared by:
Commission on Audit
LIMITED SOURCE BIDDING

FOR GOODS
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Prepared by:
Commission on Audit
LIMITED SOURCE BIDDING FOR GOODS
Limited Source Bidding, otherwise known as selective bidding, is a method of procurement of

goods that involves direct invitation to bid by the procuring entity from the list of pre-selected
suppliers with known experience and proven capability on the requirements of the particular
contract.
I. APPROVAL OF THE ALTERNATIVE METHOD
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Limited Source Bidding was in accordance
with the rules and regulations

1. copy of the approved Annual Procurement Plan (APP);
2. evidences to support the conclusion that public bidding cannot be ultimately pursued;
3. list of the only suppliers who can supply the highly specialized types of goods subject of
the specific procurement; or, list of the only suppliers of the major plant component;
4. Minutes of BAC meetings on the deliberations made;
5. BAC Resolution recommending the alternative method of procurement: Limited Source
Bidding, duly approved by the HOPE.

Audit Activities
the Answer
1. To verify if the BAC validated: 1. From the evaluation Did the BAC validate
a. that the original mode of report with supporting that the original mode
procurement per APP was documents and of procurement per
minutes of the BACs APP was public
public bidding but cannot be
meetings and relevant bidding but cannot be
ultimately pursued; BAC Resolution(s), look ultimately pursued?
and, for information on the
b. the existence of the conditions BACs validation that
to justify Limited Source the original mode of Did the BAC validate
Bidding: procurement per APP the existence of the
b.1. Procurement of highly was public bidding but conditions to justify
specialized types of goods cannot be ultimately Limited Source
(e.g., sophisticated defense pursued and of the Bidding:
existence of the
equipment, complex air
conditions to justify a. Procurement of
navigation systems, coal)
Limited Source highly specialized
where only a few suppliers Bidding. types of goods
are known to be available, (e.g.,
such that resorting to the sophisticated
public bidding method will defense
not likely result in any equipment,
additional suppliers complex air
participating in the navigation
bidding; or systems, coal)
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Prepared by:
Commission on Audit
Audit Activities
the Answer
where only a few
b.2. Procurement of major suppliers are
plant components where it known to be
is deemed advantageous to available, such
limit the bidding to known that resorting to
qualified bidders in order the public bidding
to maintain uniform quality method will not
and performance of the likely result in any
additional
plant as a whole;
suppliers or
consultants
participating in the
bidding?
September 2, 2009:
48.2. In accordance with Section 10 or
of this IRR, as a general rule, the
Procuring Entities shall adopt public b. Procurement of
bidding as the general mode of major plant
procurement and shall see to it that components where
the procurement program allows it is deemed
sufficient lead time for such public advantageous to
bidding. Alternative methods shall be limit the bidding to
resorted to only in the highly known qualified
exceptional cases provided for in this bidders in order to
Rule. maintain uniform
quality and
48.3. The method of procurement to performance of
be used shall be as indicated in the the plant as a
Approved Procurement Plan (APP). If whole?
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
49.1. Limited Source Bidding,

otherwise known as selective bidding,
is a method of procurement of goods
that involves direct invitation to bid
by the procuring entity from the list
of pre-selected suppliers with known
experience and proven capability of
the requirements of the particular
contract. This alternative method of
procurement may be employed under
any of the following conditions:
a) Procurement of highly specialized

types of goods (e.g., sophisticated
defense equipment, complex air
navigation systems, coal) where only
a few suppliers are known to be
available, such that resorting to the
public bidding method will not likely
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Prepared by:
Commission on Audit
Audit Activities
the Answer
result in any additional suppliers
participating in the bidding; or
b) Procurement of major plant

components where it is deemed
advantageous to limit the bidding to
known qualified bidders in order to
maintain uniform quality and
performance of the plant as a whole.
2. To verify if the BAC: 2. From the BAC Did the BAC

a. recommended the alternative Resolution recommend the
mode of procurement: Limited recommending Limited alternative mode of
Source Bidding as the procurement: Limited
Source Bidding to the HOPE,
method of procurement, Source Bidding to the
and look for the approval of HOPE?
b. the HOPE approved the the HOPE.
alternative method of
procurement
Did the HOPE
Implementing Rules and Regulations approve Limited
(IRR) of RA 9184, as amended on Source Bidding as the
September 2, 2009: method of
procurement?
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the HOPE.

instances of non-compliance on non-compliance to Appropriate Audit Working Papers
including the validity of the Also determine if
resulting contract; appropriate actions were
b. validity of any payment to be regard to instances of
made on the basis of the non-compliance.
contract;
c. etc. NOTE:
and develop appropriate audit Also refer to the
recommendations OFFENSES AND
Implementing Rules and Regulations this Audit Guide.
September 2, 2009:
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Prepared by:
Commission on Audit
Audit Activities
the Answer
three (3) calendar days before the date of
the procurement stage/activity. The
absence of observers will not nullify the
BAC proceedings, provided that they

instances of non-compliance and non-compliances to Appropriate Audit Working Papers
develop appropriate audit establish the cause(s) and
recommendations
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

the audit with the auditees audit/ validation document Audit Observation Memorandum (AOM), if
Management reflecting the results of applicable
COA Circular No. 2009-006 dated transmit to Management
September 15, 2009 re- Prescribing the
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Prepared by:
Commission on Audit
II. BIDDING DOCUMENTS
NOTE:
Since the requirement of regulations is for the Procuring Entity to prepare the Bidding
Documents including the Invitation to Bid (indicating therein the method of procurement to
be used) and the technical specifications, in accordance with the procedures in the IRR, the
Generic Procurement Manual and the Philippine Bidding Documents (PBDs), the audit
pertaining to Bidding Documents shall be as indicated in the Audit Guide for Bidding
Documents in Competitive/Public Bidding for Goods.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre-
selected list. All other procedures for competitive bidding shall be undertaken, except for the
advertisement of Invitation to Bid under Section 21.2.1 of the Revised IRR of RA 9184.
Manual of Procedures for the Procurement of Goods and Services, Volume 2

The following steps are followed in conducting a limited source bidding:
1.
2. The BAC, through the TWG and the BAC Secretariat, prepares the Bidding Documents including the Invitation to
Bid (indicating therein the method of procurement to be used) and the technical specifications, in accordance
with the procedures laid down in the IRR, this Manual and the PBDs.
III. PRE-PROCUREMENT CONFERENCE
NOTE:
Since the requirement of regulations is for the Procuring Entity to conduct Pre-Procurement
Conference in accordance with the procedures in the IRR, the Generic Procurement Manual
and the Philippine Bidding Documents (PBDs), the audit pertaining to Pre-Procurement
Conference shall be as indicated in the Audit Guide for Pre-Procurement Conference in
Competitive/Public Bidding for Goods.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre-selected list.
All other procedures for competitive bidding shall be undertaken, except for the advertisement of Invitation to Bid
under Section 21.2.1 of the Revised IRR of RA 9184.

1.
2.
3.
4. If a Pre-procurement Conference is required or deemed necessary as previously discussed in this Manual, the BAC
holds the said Conference. If a Pre-procurement Conference is held the participants should confirm the existence of
the conditions required by law for procurement through limited source bidding.
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Prepared by:
Commission on Audit
NOTE:
Since the requirement of regulations is for the Procuring Entity to post the Invitation to Bid in
accordance with the procedures in the IRR, the Generic Procurement Manual and the
Philippine Bidding Documents (PBDs), the audit pertaining to posting of the Invitation to Bid
shall be as indicated in the Audit Guide for posting of the Invitation to Bid in
Competitive/Public Bidding for Goods.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre-selected list.
All other procedures for competitive bidding shall be undertaken, except for the advertisement of Invitation to Bid
V. PRE-SELECTION AND INVITATION OF SUPPLIERS
A. AUDIT OBJECTIVES
1. To verify if the BAC conducted the pre-selection of suppliers as required by regulations;
2. To verify if the BAC invited pre-selected suppliers as required by regulations.

1. List maintained by the relevant government authority that has expertise in the type of
procurement concerned;
2. BAC evaluation report with supporting documents on the pre-selection of suppliers;
3. List of Pre-Selected Suppliers;
6. Invitations to bid duly received by the suppliers;

the Answer
1. To verify if the BAC: 1. From the BAC evaluation Did the BAC in the
a. used the list maintained by report with supporting pre-selection of
the relevant government documents (including a copy supplier:
of the list used by the BAC in
authority,
pre-selecting suppliers) on a. use the list
b. took into account the pre-selection of suppliers, maintained by
experience and past the minutes of BAC meetings the relevant
performance on similar conducted for the purpose, government
contracts, look for information on the authority?
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Prepared by:
Commission on Audit
the Answer
c. took into account use of the list and
capabilities with respect to consideration of capabilities b. took into
personnel, and experience in the pre- account
selection process. experience and
d. took into account
past
capabilities with respect to performance on
equipment or similar
manufacturing facilities, contracts?
e. took into account
capabilities with respect to c. took into
financial position account
in the pre-selection of capabilities with
suppliers respect to
personnel?
d. took into
account
September 2, 2009:
capabilities with
49.2. The pre-selected suppliers
respect to
shall be those appearing in a list
equipment or
maintained by the relevant
manufacturing
government authority that has
facilities?
expertise in the type of procurement
concerned. The list of pre-selected
e. took into
suppliers shall be updated
account
periodically. A copy of the list shall
capabilities with
be submitted to, and maintained
respect to
updated with, the GPPB.
financial
position?
49.3. The pre-selection shall be
based upon the capability and
resources of the bidders to perform
the contract taking into account their
experience and past performance on
similar contracts, capabilities with
respect to personnel, equipment or
manufacturing facilities, and
financial position. Pre-selection shall
be done in accordance with the
procedures provided in the GPMs.
Section 6.2. Once issued by the

GPPB, the use of the Generic
(PBDs), and other standard forms
shall be mandatory upon all
Procuring Entities. However,
entity, modifications may be made,
particularly for major and specialized
Manual of Procedures for the

Procurement of Goods and Services,
Volume 2
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Prepared by:
Commission on Audit
the Answer
The following steps are followed in
conducting a limited source bidding:
1.
2.
3. The BAC, through the Secretariat
gets the list of pre-selected
suppliers from the government
authority that has expertise in the
type of procurement at hand. It
may also access the PhilGEPS
website as a secondary source of
information.
4.
5.
6.
7.
2. To verify if the BAC sent 2. Compare the names of Did the BAC send
invitations to bid to all the suppliers per copies of invitations to bid to
pre-selected suppliers invitations to bid duly all the pre-selected
received by them with the suppliers?
suppliers in the list of pre-
selected suppliers.
September 2, 2009:
49.4. The BAC of the concerned
procuring entity shall directly invite
all the suppliers appearing in the
pre-selected list.
6.2. Once issued by the GPPB, the

use of the Generic Procurement
Manuals (GPMs), Philippine Bidding
Documents (PBDs), and other
standard forms shall be mandatory
upon all Procuring Entities. However,

Volume 2
6. The BAC Secretariat sends the

invitation to bid to the pre-
selected suppliers. The invitation
to bid is sent to ALL suppliers in
the list.
3. To verify if the BAC 3. Ahead of any procurement, Did the BAC post
Secretariat post the request the BAC Secretariat for the Invitation to
invitation to bid in: advance information on the Bid continuously in
first day of any posting. the:
a. The PhilGEPS,
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Prepared by:
Commission on Audit
the Answer
b. the website of the
procuring entity, 4. On the first day of posting 1. PhilGEPS
c. electronic procurement access the PhilGEPS website, website for 7
the website of the procuring calendar days
service provider, if any,
entity concerned, if available, starting on the
for a period of 7 calendar and website prescribed by the date of
days prior to the opening of foreign government/ foreign or advertisement?
the bids international financing
institution, if applicable. Print 2. website of the
Implementing Rules and Regulations the page where the notice was procuring entity
(IRR) of RA 9184, as amended on posted (to form part of the concerned, if
September 2, 2009: audit evidences). available, for 7
6.2. Once issued by the GPPB, the calendar days
use of the Generic Procurement 5. Access the websites at starting on the
Manuals (GPMs), Philippine Bidding random during the 7-day date of
Documents (PBDs), and other period to verify the postings. advertisement?
upon all Procuring Entities. However, 3. website
whenever necessary, to suit the prescribed by the
particular needs of the procuring foreign
entity, modifications may be made, government/
particularly for major and specialized foreign or
procurement, subject to the international
approval of the GPPB. financing
institution, if
Manual of Procedures for the applicable, for 7
Procurement of Goods and Services, calendar days
Volume 2 starting on the
The following steps are followed in date of
conducting a limited source bidding: advertisement?
5. The BAC, through the

Secretariat, posts for information
purposes the invitation to bid in a.
The PhilGEPS; b. the website of
the procuring entity and its
electronic procurement service
provider , if any, for a period of 7
calendar days prior to the opening
of the bids.
4. To verify if the BAC 6. Ahead of any procurement, Did the BAC post
Secretariat post the request the BAC Secretariat for the Invitation to
invitation to bid in any advance information on the Bid continuously at
first day of any posting. any conspicuous
conspicuous place in the
place reserved for
premises of the procuring 7. Conduct ocular inspection the purpose in the
entity for a period of 7 on the first day of posting. premises of the
calendar days prior to the procuring entity for
opening of the bids 8. Repeat the ocular 7 calendar days, as
inspections (may be at certified by the
Implementing Rules and Regulations random) during the 7-day head of the BAC
(IRR) of RA 9184, as amended on period to verify the postings. Secretariat of the
September 2, 2009: procuring entity?
6.2. Once issued by the GPPB, the 9. Request for the certification
use of the Generic Procurement of the head of the BAC
Manuals (GPMs), Philippine Bidding Secretariat
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Prepared by:
Commission on Audit
the Answer

Volume 2

purposes the invitation to bid in a.
b. c. any conspicuous place
in the premises of the procuring
entity; for a period of 7 calendar
days prior to the opening of the
bids.

appropriate audit
the contract;
c. etc. NOTE:
and develop appropriate Also refer to the OFFENSES
audit recommendations AND PENALTIES portion
writing.
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Prepared by:
Commission on Audit
the Answer
appropriate audit
recommendations.

of non-compliance.
NOTE:

Accounts

VI. OPENING AND PRELIMINARY EXAMINATION OF BIDS
VII. BID EVALUATION
VIII. POST-QUALIFICATION
IX. AWARD OF CONTRACT
NOTE:
Since the requirement of regulations is for the Procuring Entity to undertake all
other procedures for competitive bidding, except for the advertisement of Invitation
to Bid, the audit pertaining to other phases/activities in Limited Source Bidding
shall be as indicated in the Audit Guide for Competitive/Public Bidding for Goods.
Audit Criteria:

1.
2.
3.
4.
5.
6.
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Prepared by:
Commission on Audit
7. The BAC proceeds with the pre-bid conference (if deemed warranted under the
circumstances), eligibility check, bid evaluation, post-qualification and succeeding
activities up to contract award, signing and approval, following the procedures for
competitive bidding.
49.4. The BAC of the concerned procuring entity shall directly invite all the
suppliers appearing in the pre-selected list. All other procedures for competitive
bidding shall be undertaken, except for the advertisement of Invitation to Bid
54.1. Splitting of Government Contracts is not allowed. Splitting of Government

Contracts means the division or breaking up of GOP contracts into smaller
quantities and amounts, or dividing contract implementation into artificial phases
or sub-contracts for the purpose of evading or circumventing the requirements of
law and this IRR, specially the necessity of public bidding and the requirements
for the alternative methods of procurement.
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission
of bid securities may be dispensed with.
54.5. Performance and warranty securities, as prescribed in Sections 39 and 62 of

this IRR, shall be submitted for contracts acquired through the alternative
methods of procurement, except for Shopping under Section 52 and Negotiated
Procurement under Sections 53.2 emergency cases), 53.9 (small value
procurement), 53.10 (lease of real property), and 53.13 (UN agencies).
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Prepared by:
Commission on Audit
DIRECT CONTRACTING
FOR GOODS
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Prepared by:
Commission on Audit
DIRECT CONTRACTING FOR GOODS
Direct Contracting or single source procurement is a method of procurement of goods that

does not require elaborate Bidding Documents. The supplier is simply asked to submit a price
quotation or a pro-forma invoice together with the conditions of sale. The offer may be accepted
immediately or after some negotiations.
A. AUDIT OBJECTIVE:
To verify if the adoption of Direct Contracting was in accordance with the rules and
regulations

3. evidence of proprietary nature of the item to be procured; or
4. copy of the contract with a provision which requires procurement of critical plant
components from a specific supplier as a condition precedent to hold a contractor to
guarantee its project performance, in accordance with the provisions of its contract; or
5. evidence of exclusive dealership or of absence of sub-dealers selling at lower prices;
6. evidence that no suitable substitute for the item to be procured can be obtained at more
advantageous terms to the GOP;
8. BAC Resolution recommending the alternative method of procurement: Direct Contracting,
duly approved by the HOPE.

Audit Activities
the Answer
1. To verify if the BAC 1. From the minutes of the Did the BAC validate
validated: BACs meetings and that the original mode
a. that the original mode of relevant BAC of procurement per
Resolution(s), look for APP was public
procurement per APP was
information on the BACs bidding but cannot be
public bidding but cannot be validation that the ultimately pursued?
ultimately pursued; original mode of
and, procurement per APP
b. the existence of the was public bidding but Did the BAC validate
conditions to justify Direct cannot be ultimately the existence of the
Contracting: pursued and of the conditions to justify
b.1. the goods are existence of the Direct Contracting:
proprietary in nature conditions to justify
Direct Contracting. a. the goods are
which can be obtained
proprietary in
only from the proprietary
nature which can
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Prepared by:
Commission on Audit
Audit Activities
the Answer
source, i.e. when patents, be obtained only
trade secrets, and from the
copyrights prohibit proprietary source,
i.e. when patents,
others from
trade secrets, and
manufacturing the same copyrights prohibit
item; or others from
b.2. the procurement manufacturing the
same item?
involves critical plant
components from a b. the patent,
specific supplier and is a copyright and
condition precedent to other evidences of
hold a contractor to propriety?
guarantee its project
performance, in or
accordance with the c. the procurement
provisions of its contract; involves critical
plant components
or
from a specific
b.3. the item to be procured
supplier and is a
is sold by an exclusive condition
dealer or manufacturer precedent to hold
which does not have sub- a contractor to
dealers selling at lower guarantee its
prices and for which no project
suitable substitute can be performance, in
obtained at more accordance with
the provisions of
advantageous terms to
its contract?
the GOP.
or
Implementing Rules and Regulations d. the item to be
(IRR) of RA 9184, as amended on procured is sold by
September 2, 2009: an exclusive dealer
48.1. Subject to the prior approval or manufacturer
of the Head of the Procuring Entity, which does not
and whenever justified by the have sub-dealers
conditions provided in this Act, the selling at lower
procuring entity may, in order to prices and for
promote economy and efficiency, which no suitable
resort to any of the alternative substitute can be
methods of procurement provided obtained at more
in this Rule. In all instances, the advantageous
procuring entity shall ensure that terms to the GOP?
the most advantageous price for
the Government is obtained.
48.2. In accordance with Section

10 of this IRR, as a general rule,
the Procuring Entities shall adopt
public bidding as the general mode
of procurement and shall see to it
that the procurement program
allows sufficient lead time for such
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the Answer
public bidding. Alternative methods
shall be resorted to only in the
highly exceptional cases provided
for in this Rule.
48.3. The method of procurement

to be used shall be as indicated in
the Approved Procurement Plan
(APP). If the original mode of
procurement recommended in the
APP was public bidding but cannot
be ultimately pursued, the BAC,
through a Resolution, shall justify
and recommend the change in the
mode of procurement to be
approved by the HOPE.
50. Direct contracting may be

resorted to by concerned Procuring
Entities under any of the following
conditions:
a) Procurement of goods of
proprietary nature which can be
obtained only from the proprietary
source, i.e. when patents, trade
secrets, and copyrights prohibit
others from manufacturing the
same item;
b) When the procurement of critical

plant components from a specific
supplier is a condition precedent
to hold a contractor to guarantee
its project performance, in
accordance with the provisions of
its contract; or
c) Those sold by an exclusive dealer

or manufacturer which does not
have sub-dealers selling at lower
prices and for which no suitable
substitute can be obtained at
more advantageous terms to the
GOP.
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3. To verify if the BAC: 3. From the BAC Resolution Did the BAC
a. recommended the recommending Direct recommend the
alternative mode of Contracting as the method alternative mode of
of procurement, look for procurement: Direct
procurement: Direct
the approval of the HOPE. Contracting to the
Contracting to the HOPE, HOPE?
and
b. the HOPE approved the
method of procurement Did the HOPE
approve Direct
Implementing Rules and Regulations Contracting as the
(IRR) of RA 9184, as amended on method of
September 2, 2009: procurement?
48.1. Subject to the prior approval
of the Head of the Procuring Entity,
and whenever justified by the
conditions provided in this Act, the
procuring entity may, in order to
promote economy and efficiency,
resort to any of the alternative
methods of procurement provided
in this Rule. In all instances, the
procuring entity shall ensure that
the most advantageous price for
the Government is obtained.

instances of non-compliance on non-compliance to establish Appropriate Audit Working Papers
the: the effects and develop
appropriate audit
b. validity of any payment to be regard to instances of non-
made on the basis of the compliance.
contract;
c. etc.
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the Answer
recommendations
Implementing Rules and NOTE:

Regulations (IRR) of RA 9184, as Also refer to the
amended on September 2, 2009: OFFENSES AND
13.3. Observers shall be invited at least PENALTIES portion of
three (3) calendar days before the date this Audit Guide.
writing.

appropriate audit
recommendations
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

DIRECT CONTRACTING FOR GOODS
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NOTE:
The regulations provide that the method of procurement does not require elaborate
Bidding Documents.
Audit Criteria:
50. Direct Contracting or single source procurement is a method of procurement of
goods that does not require elaborate Bidding Documents. The supplier is simply
asked to submit a price quotation or a pro-forma invoice together with the
conditions of sale. The offer may be accepted immediately or after some
negotiations.
III. PRICE QUOTATION AND ACCEPTANCE OF OFFER
A. AUDIT OBJECTIVE
To verify if the BAC conducted Direct Contracting as required by regulations

1. BAC evaluation report with supporting documents on the accepted offer;
2. Request for price quotation from the identified supplier or a pro-forma invoice;

Answer
1. To verify if the 1. Obtain a copy of the Did the Procuring
Procuring Entity Procuring Entitys request Entity request for
requested for price for price quotation from the price quotation
identified supplier or a pro- from the identified
quotation from the
forma invoice together with supplier or a pro-
identified supplier or a
the conditions of sale and a forma invoice
pro-forma invoice copy of the suppliers together with the
together with the submission. conditions of sale?
conditions of sale
Implementing Rules and Did the supplier

Regulations (IRR) of RA 9184, as submit the
amended on September 2, 2009: documents
requested?
50. The supplier is simply
asked to submit a price
quotation or a pro-forma
invoice together with the
conditions of sale. The offer
may be accepted immediately
or after some negotiations.
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Answer
2. To verify if the 2. From the documentation Did the Procuring
Procuring Entity of the evaluation conducted Entity evaluate and
evaluated and accepted by the procurement unit, accept the offer
look for information on the based on pre-
the offer based on pre-
evaluation conducted and established criteria
established criteria and the decisions made. and procedures?
procedures

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

instances of non- non-compliance to establish Appropriate Audit Working Papers
appropriate audit
and outputs including Also determine if
the validity of the appropriate actions were
resulting contract;
of the contract;
NOTE:
c. etc. Also refer to the
this Audit Guide.
2009:

appropriate audit
appropriate audit
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Answer
recommendations recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

the auditees reflecting the results of the
Management
to Management
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REPEAT ORDER FOR GOODS
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REPEAT ORDER FOR GOODS
Repeat Order, when provided for in the APP, is a method of procurement of goods from the
previous winning bidder, whenever there is a need to replenish goods procured under a contract
previously awarded through Competitive Bidding.
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Repeat Order was in accordance with the
rules and regulations

2. copy of the original contract and evidences that it was awarded through Competitive
Bidding;
3. copy of the prices for the repeat order with evidences that they are the prevailing market
price (advantageous to the GOP) as of the time of the negotiation;
4. evidences to support the conclusion that the repeat order contract did not result to
splitting of requisition or contract;
5. Analysis showing that the quantity of each item in the repeat order did not exceed twenty-
five percent (25%) of the quantity of each item in the original contract;

Audit Activities
the Answer
1. To verify if the BAC 1. From the evaluation Did the BAC validate
validated: report with supporting that Repeat Order is
a. that Repeat Order is the documents (and the mode of
minutes of the BACs procurement provided
mode of procurement
meetings, look for for in the approved
provided for in the approved information on the APP?
APP; BACs validation that
and that: the mode of
b. the original contract was procurement per APP is Did the BAC validate
previously awarded through Repeat Order and of that the original
Competitive Bidding; the existence of the contract was
c. Unit prices of the repeat conditions to justify previously awarded
order were the same as or Repeat Ordering. through Competitive
lower than those in the Bidding?
original contract, provided
that such prices are still the Did the BAC validate
most advantageous to the that Unit prices of the
GOP after price verification; repeat order were the
d. The repeat order will not same as or lower
result in splitting of than those in the
contracts, requisitions, or original contract,
purchase orders, as provided provided that such
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the Answer
for in Section 54.1 of the prices are still the
Revised IRR of RA 9184; most advantageous
e. Except in cases duly to the GOP after price
verification?
approved by the GPPB, the
repeat order was availed of
only within six (6) months Did the BAC validate
from the contract effectivity that repeat order will
date stated in the Notice to not result in splitting
Proceed arising from the of contracts,
original contract; requisitions, or
and purchase orders?
f. The repeat order did NOT
exceed twenty-five percent
Did the BAC validate
(25%) of the quantity of
that except in cases
each item in the original duly approved by the
contract. GPPB, the repeat
order was availed of
only within six (6)
months from the
September 2, 2009:
contract effectivity
48.1. Subject to the prior approval date stated in the
of the Head of the Procuring Entity, Notice to Proceed
and whenever justified by the arising from the
conditions provided in this Act, the original contract?
procuring entity may, in order to
promote economy and efficiency,
resort to any of the alternative Did the BAC validate
methods of procurement provided that the repeat order
in this Rule. In all instances, the did NOT exceed
procuring entity shall ensure that twenty-five percent
the most advantageous price for (25%) of the quantity
the Government is obtained. of each item in the
original contract?
51. Repeat Order, when provided
for in the APP, is a method of
procurement of goods from the
previous winning bidder,
whenever there is a need to
replenish goods procured under a
contract previously awarded
through Competitive Bidding.
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the Answer
a) Unit prices of the repeat order
must be the same as or lower
than those in the original
contract, provided that such
prices are still the most
advantageous to the GOP after
price verification;
b) The repeat order will not result
in splitting of contracts,
requisitions, or purchase orders,
as provided for in Section 54.1
of the Revised IRR of RA 9184;
c) Except in cases duly approved
by the GPPB, the repeat order
shall be availed of only within
six (6) months from the contract
effectivity date stated in the
Notice to Proceed arising from
the original contract; and
d) The repeat order shall not
exceed twenty-five percent
(25%) of the quantity of each
item in the original contract.
2. To verify if the BAC 2. Ahead of the Did the BAC

Secretariat posted the notice of procurement, request the Secretariat post the
award in: BAC Secretariat for notice of award in:
advance information on
a. the PhilGEPS,
the schedule of any a. the PhilGEPS?
posting.
procuring entity, if b. the website of
available 3. Access the PhilGEPS the procuring
c. any conspicuous place in website, the website of entity?
the premises of the the procuring entity
procuring entity concerned, if available c. any conspicuous
and print the page where place in the
Implementing Rules and Regulations the notice was posted (to premises of the
(IRR) of RA 9184, as amended on form part of the audit procuring
September 2, 2009: evidences). entity?
54.3 In all instances of alternative
4. Conduct ocular
methods of procurement, the BAC,
inspection on the schedule
through the Secretariat, shall post,
of posting.
for information purposes, the notice
of award in the PhilG-EPS website,
the website of the procuring entity
concerned, if available, and at any
conspicuous place reserved for this
purpose in the premises of the
procuring entity.
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the Answer
contract;
c. etc.
NOTE:
Implementing Rules and PENALTIES portion
Regulations (IRR) of RA 9184, as of this Audit Guide.
writing.
and develop appropriate audit establish the cause(s) and
recommendations
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
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SHOPPING FOR GOODS
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Commission on Audit
SHOPPING FOR GOODS
Shopping is a method of procurement of goods whereby the procuring entity simply

requests for the submission of price quotations for readily available off-the-shelf goods or
ordinary/regular equipment to be procured directly from suppliers of known qualifications.
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Shopping was in accordance with the rules
and regulations

3. evidences to support the occurrence of unforeseen contingency requiring immediate
purchase;
4. analysis leading to the conclusion that the items procured were ordinary or regular
office supplies and equipment;
5. evidences of the non-availability of the items in the Procurement Service;
6. analysis leading to the conclusion that the amounts involved are within the threshold
provided in Annex H of the Revised IRR of RA 9184;
8. BAC Resolution recommending the alternative method of procurement: Shopping, duly

Audit Activities
the Answer
ultimately pursued;
BAC Resolution(s), look ultimately pursued?
to justify Shopping: the original mode of Did the BAC validate
b.1. occurrence of unforeseen procurement per APP the existence of the
contingency requiring was public bidding but conditions to justify
immediate purchase; cannot be ultimately Shopping:
b.2. procurement of ordinary pursued and of the
existence of the a. occurrence of
or regular office supplies
conditions to justify unforeseen
and equipment not
Shopping. contingency
available in the requiring
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the Answer
Procurement Service; immediate
b.3. the amounts involved did purchase?
not exceed the thresholds
or
in Annex H of the
b. procurement of
Revised IRR of RA 9184, ordinary or regular
c. that there is no splitting.
office supplies and
equipment not
available in the
Procurement
September 2, 2009:
Service?
48.3. The method of procurement to Or
be used shall be as indicated in the c. the amounts
Approved Procurement Plan (APP). If involved did not
the original mode of procurement exceed the
recommended in the APP was public thresholds in
bidding but cannot be ultimately Annex H of the
pursued, the BAC, through a Revised IRR of RA
Resolution, shall justify and 9184?
of procurement to be approved by Did the BAC validate
the HOPE. that there is no
splitting?
52.1. Shopping is a method of
procurement of goods whereby the
procuring entity simply requests for
the submission of price quotations for
readily available off-the-shelf goods
or ordinary/regular equipment to be
procured directly from suppliers of
known qualifications. This method of
procurement shall be employed in
any of the following cases:
a) When there is an unforeseen

contingency requiring immediate
purchase: Provided, however, That
the amount shall not exceed the
thresholds prescribed in Annex H
of the Revised IRR or RA 9184.
b) Procurement of ordinary or regular

office supplies and equipment not
available in the Procurement Service
involving an amount not exceeding
the thresholds prescribed in Annex
H of this IRR.
52.2. The phrase ordinary or regular

office supplies shall be understood
to include those supplies,
commodities, or materials which,
depending on the procuring entitys
mandate and nature of operations,
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the Answer
are necessary in the transaction of its
official businesses, and consumed in
the day-to-day operations of said
procuring entity. However, office
supplies shall not include services
such as repair and maintenance of
equipment and furniture, as well as
trucking, hauling, janitorial, security,
and related or analogous services.
54.1. Splitting of Government

Contracts is not allowed. Splitting of
Government Contracts means the
division or breaking up of GOP
contracts into smaller quantities and
amounts, or dividing contract
implementation into artificial phases
or sub-contracts for the purpose of
evading or circumventing the
requirements of law and this IRR,
specially the necessity of public
bidding and the requirements for the
alternative methods of procurement.

mode of procurement: recommending Shopping alternative mode of
as the method of procurement:
Shopping to the HOPE,
procurement, look for the Shopping to the
and
approval of the HOPE. HOPE?
procurement
Did the HOPE
Implementing Rules and Regulations approve Shopping as
(IRR) of RA 9184, as amended on the method of
48.1. Subject to the prior approval of
the Head of the Procuring Entity, and
whenever justified by the conditions
provided in this Act, the procuring
entity may, in order to promote
economy and efficiency, resort to any
of the alternative methods of
procurement provided in this Rule. In
all instances, the procuring entity
shall ensure that the most
advantageous price for the
Government is obtained.

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Audit Activities
the Answer
the HOPE.
contract;
c. etc. NOTE:
September 2, 2009:

recommendations
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
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Audit Activities
the Answer
SHOPPING FOR GOODS
II. PRICE QUOTATIONS, ACCEPTANCE OF OFFER

AND AWARD OF CONTRACT
A. AUDIT OBJECTIVE
To verify if the Procuring Entity conducted Shopping as required by regulations

1. evidences that the suppliers identified were bona fide;
2. copy of the requests for price quotations duly received by the suppliers;
3. copy of the price quotations;
4. evidence of posting request for quotations (RFQ);
5. documentation of the analysis of the price quotations leading to the conclusion of what
was to be accepted/ compliance with the specifications and other terms and conditions
stated in the RFQ;
6. documentation of the recommendation to the authorized official of the Procuring Entity;
7. documentation of the acceptance of the offer;
8. Abstract of Quotations;
9. notice of award;
10. evidence of posting notice of award

the Answer
1. To verify if the Procuring 1. From the documentation of Did the
Entity obtained price the evaluation conducted by procurement unit
quotations from at least 3 the procurement unit of the of the Procuring
Procuring Entity, with Entity obtain price
bona fide suppliers (1
supporting documents, look quotations from at
supplier during unforeseen for information on whether least 3 bona fide
contingencies requiring price quotations were suppliers (or 1
immediate purchase) obtained from at least 3 bona supplier during
fide suppliers (or 1 supplier unforeseen
Implementing Rules and Regulations during unforeseen contingencies)?
(IRR) of RA 9184, as amended on contingencies).
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the Answer
September 2, 2009:
52.3. Under Section 52.1 (b) of

this IRR, at least three (3) price
quotations from bona fide
suppliers shall be obtained.
Guidelines for Shopping and Small

Value Procurement covered by GPPB
Resolution No. 09-2009, dated 23
November 2009:
1. . . .
2. . . .
3. Procedural Guidelines

c. The Request for Quotation
(RFQ) shall be sent to at least
three (3) suppliers of known
qualifications. However, during
unforeseen contingencies
requiring immediate purchase
under Section 52.1 (a) of the
IRR, the RFQ may be sent to
only one (1) supplier.
2. For procurement of 2. Ahead of the procurement, Did the

ordinary or regular office request the procuring entity procurement unit
supplies and equipment with for advance information on the of the Procuring
schedule of any posting. Entity post the
an ABC of more than Php
notice of award in:
50,000.00, To verify if the
3. Access the PhilGEPS
procuring entity posted the website, the website of the a. the PhilGEPS
RFQs in: procuring entity concerned, if for a period of 7
available and print the page calendar days?
a. the PhilGEPS, where the notice was posted
b. the website of the (to form part of the audit b. the website of
procuring entity, if evidences). the procuring
available entity for a
4. Conduct ocular inspection period of 7
c. any conspicuous place in
on the schedule of posting. calendar days?
the premises of the
procuring entity c. any
for a period of 7 calendar conspicuous
days place in the
premises of the
Guidelines for Shopping and Small procuring entity
Value Procurement covered by GPPB for a period of 7
Resolution No. 09-2009, dated 23 calendar days?
November 2009:
1. . . .
2. . . .

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d. RFQs shall also be posted for
a period of seven (7) calendar
days in the Philippine
Government Electronic
Procurement System (PhilG-
EPS) website, website of the
procuring entity, if available,
and at any conspicuous place
reserved for this purpose in the
premises of the procuring
entity. However, in the following
instances, the posting
requirement shall not be
applicable:
i. When there is an unforeseen
contingency requiring
immediate purchase under
Section 52.1(a) of the IRR; or
ii. RFQs with ABCs equal to
Fifty Thousand Pesos (Php
50,000.00) and below.
3. To verify if the procuring 5. Look for the Abstract of Did the

entity prepared an Abstract of Quotations and check for the procurement unit
Quotations after the deadline indication of the lowest of the Procuring
quotation. Entity prepare an
for submission of price
Abstract of
quotations and determined
6. Compare the date of the Quotations?
the lowest quotation Abstract of Quotations with the
deadline for submission of Did the
Guidelines for Shopping and Small price quotations as indicated in procurement unit
Value Procurement covered by GPPB the RFQs. of the Procuring
Resolution No. 09-2009, dated 23 Entity prepare an
November 2009: Abstract of
Quotations after
1. . . .
the deadline for
2. . . .
submission of price
quotations?

e. After the deadline for
Did the
submission of price quotations,
procurement unit
an Abstract of Quotations shall
of the Procuring
be prepared setting forth the
Entity determine
names of those who responded
the lowest
to the RFQ, their corresponding
quotation?
price quotations, and the lowest
quotation submitted.
4. To verify if the procuring 7. Compare the name of Did the procuring

entity made the award of supplier with the lowest entity award the
contract to the lowest quotation as indicated in the contract to the
Abstract of Quotation with the lowest quotation
quotation which complied
name of supplier who was which complied
with the specifications and
given the Notice of Award. with the
other terms and conditions specifications and
stated in the RFQ 8. From the documentation of other terms and
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the Answer
Guidelines for Shopping and Small the evaluation of price conditions stated in
Value Procurement covered by GPPB quotations conducted by the the RFQ?
Resolution No. 09-2009, dated 23 procuring entity, look for the
November 2009: verification on the compliance
1. . . . other terms and conditions
2. . . . stated in the RFQ.

h. Award of contract shall be
made to the lowest quotation
for goods which complies with
the specifications and other
terms and conditions stated in
the RFQ.
5. For procurement with and 9. Ahead of the procurement, Did the procuring
ABC of more than request the procuring entity entity post the
P50,000.00, To verify if the for advance information on the notice of award in:
schedule of any posting.
procuring entity posted the
a. the PhilGEPS?
notice of award in:
a. the PhilGEPS, website, the website of the b. the website of
b. the website of the procuring entity concerned, if the procuring
procuring entity, if available and print the page entity?
available where the notice was posted
c. any conspicuous place in (to form part of the audit c. any
the premises of the evidences). conspicuous
procuring entity place in the
11. Conduct ocular inspection premises of
on the schedule of posting. the procuring
Guidelines for Shopping and Small
entity?
Value Procurement covered by GPPB
November 2009:
1. . . .
2. . . .

i. For information purposes, all
awards shall be posted in the
PhilG-EPS website, website of
the procuring entity, if available,
except for those with ABCs
equal to Fifty Thousand Pesos
(Php 50,000.00) and below.

appropriate audit
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the Answer
the contract;
NOTE:
c. etc.
Also refer to the
this Audit Guide.
writing.

appropriate audit
recommendations.

of non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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Other criteria:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
54.5. Performance and warranty securities, as prescribed in Sections 39 and 62 of this

IRR, shall be submitted for contracts acquired through the alternative methods of
procurement, except for Shopping under Section 52 and Negotiated Procurement
under Sections 53.2 emergency cases), 53.9 (small value procurement), 53.10 (lease of
real property), and 53.13 (UN agencies).
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OF GOODS
AFTER TWO (2) FAILED BIDDINGS
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Prepared by:
Commission on Audit
NEGOTIATED PROCUREMENT OF GOODS
Negotiated Procurement is a method of procurement of goods whereby the procuring

entity directly negotiates a contract with a technically, legally, and financially capable supplier.
It is resorted after two failed biddings (where there has been failure of public bidding
for the second time) or in any of the following cases:
a. Emergency Cases,
b. Agency-to-Agency,
c. Procurement Agent,
d. Defense Cooperation Agreement,
e. Small-Value Procurement,
f. NGO Participation
g. United Nations Agencies.
I. PREPARATORY ACTIVITY: MAINTAIN REGISTRY OF SUPPLIERS
The maintenance of the Registry of Suppliers is a continuing activity of the Procuring Entity,
through its Procurement Unit.
A. AUDIT OBJECTIVE
To determine if the Procuring Entity developed and maintained a Registry of Suppliers

Documentation of the System on the Registry of Suppliers maintained by the Procuring
Entity

Answer
1. To verify if the procuring 1. Obtain a copy of the Did the Procuring
entity maintained a registry registry of suppliers Entity maintain a
of suppliers as basis for maintained by the registry of
Procuring Entity. suppliers as basis
selecting the suppliers for
for selecting the
negotiations suppliers for
negotiations?
September 2, 2009:
53.1.2.2. All Procuring Entities
shall maintain a registry of
suppliers as basis for selecting
the suppliers for negotiations.
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Answer
instances of non-compliance non-compliance to establish Appropriate Audit Working Papers
appropriate audit
b. validity of any payment to regard to instances of non-
be made on the basis of compliance.
the contract;
c. etc.

writing.

appropriate audit
recommendations.
Also determine if
compliance.

results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if applicable
auditees Management reflecting the results of the
Accounts
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II. PREPARATORY ACTIVITY: BIDDING DOCUMENTS
A. AUDIT OBJECTIVE:
1. To verify if after the Procuring Entitys conducted a mandatory review of bidding

documents due to two (2) failed biddings
2. To verify if the Bidding Documents for the specific procurement followed the standard
forms and manuals prescribed by the Government Procurement Policy Board (GPPB)

1. The procuring entitys Customized Bidding Documents for Goods;
2. Document evidencing BACs declaration that there has been two (2) failed biddings;
4. BACs report on mandatory review of the terms, conditions, specifications and cost
estimates;
5. BAC Resolution recommending to the HOPE approval of the revised and agreed
minimum technical specifications and ABC.

the Answer
1. To verify if the 1. From the documentation Did the BAC declare
procuring entity of the earlier two (2) two (2) failed
conducted a mandatory biddings conducted, look biddings?
for information on the
review of the terms,
BACs declaration that there
conditions, specifications,
have been two (2) failed
and cost estimates on the biddings.
basis of which the BAC
revised and agreed on
the: 2. From the TWG Did the Procuring
a. minimum technical evaluation report with Entity conduct a
specifications, supporting documents and mandatory review of
b. adjusted the ABC duly reviewed by the BAC, the terms, conditions,
minutes of the meetings of specifications, and
Implementing Rules and the BAC, and BAC cost estimates after
Regulations (IRR) of RA 9184, as Resolutions, look for two failed biddings?
amended on September 2, 2009: evidences of the conduct of
the mandatory review of
53.1.1. After conduct of the
the terms, conditions,
mandatory review of the
specifications and cost
terms, conditions,
estimates by concerned
specifications, and cost
Offices of the Procuring
estimates, as prescribed in
Entity.
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the Answer
Section 35 of this IRR, the
BAC shall revise and agree
on the minimum technical
specifications, and if
necessary, adjust the ABC, 3. From the minutes of the Did the BAC revise
subject to the required BACs meetings and BAC and agree on the:
approvals. However the Resolutions, look for
ABC cannot be increased by information on the a. minimum technical
more than twenty percent deliberation, revision and specifications?
(20%) of the ABC for the agreement on the minimum
last failed bidding. technical specifications and b. Revised ABC?
adjusted ABC; and
recommendation to the
HOPE for approval. Did the BAC submit
the revised minimum
technical
specifications to the
HOPE for approval?
Did the BAC submit

the adjusted ABC to
the HOPE for
approval?
4. From the minutes of the Did the BAC ensure

BACs meetings and BAC that the adjustment
Resolutions, look for in the ABC was at a
information on the BACs maximum of 20% of
evaluation to ensure that the ABC for the
the adjustment in the ABC second failed bidding?
was at a maximum of 20%
of the ABC for the second
failed bidding.
ON THE BIDDING DOCUMENTS
Documents for the adopted customized Bidding Documents/
specific procurement Documents and the results Information
of the earlier validation of complete:
include the information
this element showed that
and are according to the these are compliant with the a. Approved Budget
forms indicated in the Philippine Bidding for the Contract?
Customized Bidding Documents for the
Documents approved by Procurement of Goods and b. Request for
the GPPB or the Philippine Section 17.1 of the Submission of
Bidding Documents for Implementing Rules and Price Quotations?
the Procurement of Regulations of RA 9184,
Goods, 3rd Edition secure from the BAC c. Eligibility
Secretariat duly certified Requirements?
(October 2009) issued by
copies of the Bidding
the GPPB and Section 17
Documents for the specific d. Instruction to
of the Implementing procurement and compare Bidders, including
Rules and Regulations of these with the customized - scope of bid/
RA 9184 as amended on Bidding Documents of the proposal?
September 2, 2009: procuring entity.
a. Approved Budget for - documents
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the Contract; If the customized comprising the
b. Request for Bidding Documents are not bid/ proposal?
Submission of Price compliant, compare the
procurement-specific Bidding - criteria for
Quotations;
Documents with the eligibility?
c. Eligibility Philippine Bidding
Requirements; Documents for the - Price quotations
d. Instruction to Bidders, Procurement of Goods evaluation
including scope of bid/ issued by the GPPB. methodology/
proposal, documents criteria?
comprising the bid/
proposal, criteria for - post-
eligibility, price qualification
methodology?
quotations evaluation
methodology/criteria
- date of the pre-
in accordance with the bid conference,
Act, and post- if applicable?
qualification, as well
as the date, time and - time of the pre-
place of the pre-bid bid conference?
conference (where
applicable), - Place of the
pre-bid
submission and
conference?
opening of price
quotations; - Deadline for
d.1. including: submission of
Following price
completion of the quotations?
negotiations, the
BAC shall request - Place of
all suppliers submission of
price
remaining in the
quotations?
proceedings to
submit on a - Date of opening
specified date, a of price
best and final offer quotations?
with respect to all
aspects of the - Time of opening
proposals, and of price
d.2. selection of the quotations?
successful offer on
- Place of opening
the basis of such of price
best and final offers quotations?
meeting the
minimum technical - following
requirements and completion of
not exceeding the the
ABC; negotiations,
e. Scope of work, where requesting all
applicable; suppliers
remaining in the
proceedings to
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Technical submit on a
Specifications; specified date, a
g. Form of Bid, Price best and final
offer with
Form, and List of
respect to all
Goods; aspects of the
h. Delivery Time or proposals?
i. Form, Amount, and - selection of the
Validity of successful offer
Performance Security on the basis of
and Warranty; such best and
j. Form of Contract and final offers
meeting the
General and Special
minimum
Conditions of
technical
Contract; requirements
Implementing Rules and and not
Regulations (IRR) of RA 9184, as exceeding the
amended on September 2, 2009: ABC?
17.1. The Bidding Documents
shall be prepared by the e. Scope of work?
standard forms and manuals f. Plans/Drawings
prescribed by the GPPB. and Technical
a. Approved Budget for the Specifications?
Contract;
b. Invitation to Bid; g. Form of Bid, Price
c. Eligibility Requirements; Form, and List of
d. Instruction to Bidders, Goods?
documents comprising the h. Delivery Schedule
bid, criteria for eligibility, bid or Completion
evaluation Schedule?
accordance with the Act, i. Form, Amount,
and post-qualification, as and Validity of
well as the date, time and Performance
place of the pre-bid Security and
conference (where Warranty
bids and opening of bids; j. Form of Contract
e. Scope of work, where and General and
applicable; Special Conditions
f. Plans/Drawings and of Contract?
Technical Specifications;
g. Form of Bid, Price Form, Are the Bidding
and List of Goods; Documents in the
h. Completion Schedule; required form:
i. Form, Amount, and Validity
Period of Bid Security; a. Request for
[REVISED BY the Revised IRR Submission of
of RA 9184, item 54.4. Except Price Quotation?
for Limited Source Bidding
under Section 49 of this IRR, b. Instructions to
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submission of bid securities Bidders?
may be dispensed with.]
j. Form, Amount, and Validity c. Price Quotation
of Performance Security and Data Sheet?
Warranty;
[Also per Revised IRR of RA d. General Conditions
9184, Section 54.5. of the Contract?
Performance and warranty
securities, as prescribed in e. Special Conditions
Sections 39 and 62 of this of Contract?
IRR,
shall be submitted for f. Schedule of
contracts acquired through Requirements?
the alternative methods of
procurement, except for g. Technical
Shopping under Section 52 Specifications?
and Negotiated
Procurement under h. Price Quotation
Sections 53.2 (emergency Forms?
cases), 53.9 (small value
procurement), 53.10 (lease
of real property), and 53.13
(UN agencies).]
and
k. Form of Contract and
General and Special
Conditions of Contract.
53.1.4. Following completion
of the negotiations, the
procuring entity shall request
all suppliers, contractors, or
consultants remaining in the
proceedings to submit, on a
specified date, a best and
final offer with respect to all
aspects of their proposals.
53.1.5. The procuring entity

shall select the successful
offer on the basis of such
best and final offers which
should meet the procuring
entitys minimum technical
requirements and should not
exceed the ABC.
GPPB Resolution No. 05-
2009 dated 30 September
2009:
all branches, agencies,
departments, bureaus, offices
and instrumentalities of the
Government, including
government-owned and/or
controlled corporations,
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government financial
institutions, state universities
and college, and local
government units, are hereby
mandated to use the
Third Edition for all of their
procurement activities.

appropriate audit
resulting contract;
of the contract;
c. etc.
OFFENSES AND
Regulations (IRR) of RA 9184, this Audit Guide.
2009:

appropriate audit
appropriate audit
recommendations.
recommendations
Also determine if
compliance.
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the Answer
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

the auditees reflecting the results of the
Management
to Management

III. PREPARATORY ACTIVITY: PRE-PROCUREMENT CONFERENCE
The pre-procurement conference is the forum where all officials involved in the
procurement meet and discuss all aspects of a specific procurement activity, which includes the
technical specifications, the Approved Budget for the Contract (ABC), the applicability and
appropriateness of the recommended method of procurement and the related milestones, the
bidding documents, and availability of the pertinent budget release for the project.
1. To verify if the Pre-Procurement Conference was conducted within the required time;
2. To verify if the participants to the Pre-Procurement Conference were as required;
3. To verify if during the Pre-Procurement Conference the participants, led by the Bids and
Awards Committee (BAC), performed the required tasks and attained the objectives of
the Conference.

1. copy of the approved Minutes of Pre-Procurement Conference duly certified by the BAC
Secretariat;
3. Duly certified copies of the documents (Office Orders, contracts,
Organizational/Functional Charts, etc) which the BAC Secretariat used as bases for
identifying and notifying the participants to the Pre-Procurement Conference, including
duly certified copies of the notices issued with evidence of receipt by the participants.
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1. To verify if the BAC conducted 1. Secure from the BAC Did the BAC
the Pre-Procurement Conference Secretariat a duly certified conduct the Pre-
prior to the posting or the copy of the Minutes of Pre- Procurement
issuance of the Invitation or Procurement Conference and Conference prior
compare the date the to the posting or
Request for Submission of Price conference was held with the issuance of the
Quotation date indicated in the print-out Invitation or
of website pages where the Request for
Implementing Rules and Regulations Invitation or Request for Submission of
(IRR) of RA 9184, as amended on Submission of Price Quotation Price Quotation?
September 2, 2009: was posted.
20.1. Prior to the Advertisement or the
issuance of the Invitation to Bid for
each procurement undertaken through
public bidding, the BAC, through its
Secretariat shall call for a Pre-
Procurement Conference.
2. To verify if the participants to 2. Secure from the BAC Did the
the Pre-Procurement Conference Secretariat duly certified participants to
included the BAC, the copies of the documents the Pre-
(Office Orders, contracts, Procurement
Secretariat, the unit or officials,
Organizational/Functional Conference
including consultants hired by
Charts, etc) which it used as include the:
the procuring entity, who bases for identifying and
prepared the Bidding Documents notifying the participants to a. BAC?
and the draft Invitation to Bid the Pre-Procurement
Conference, including duly b. Secretariat?
Implementing Rules and Regulations certified copies of the notices
(IRR) of RA 9184, as amended on issued with evidence of receipt c. unit or
September 2, 2009: by the participants. officials who
20.1. The pre-procurement prepared the
conference shall be attended by the 3. From the Minutes of Pre- Bidding
BAC, the Secretariat, the unit or Procurement Conference look Documents
officials, including consultants hired by for the names of the members and the draft
the procuring entity, who prepared the of the BAC, the members of Invitation to
Bidding Documents and the draft the Secretariat, the officials Bid?
Invitation to Bid, for each procurement. and/or consultants who
prepared the Bidding d. consultants
Documents and the draft hired by the
Invitation to Bid. procuring
entity, who
prepared the
Bidding
Documents
and the draft
Invitation to
Bid?
3. To verify if during the Pre- 4. From the Minutes of Pre- Did the
Procurement Conference the Procurement Conference look participants led
participants, led by the BAC, for information on the by the BAC
presentation of the scope of discuss and
the contract, the ABC, and confirm the:
contract duration, the
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objectives: deliberation thereon, and the a. Description of
conclusions reached as a result the scope of
a. Discussed relevant of the deliberation; and the contract?
information and confirmed the analyze if they led to the
description of the scope of the confirmation of the description b. That there
contract, the ABC, and contract of the scope of the contract, was no
duration; that there was no splitting, the splitting?
ABC, and the contract
b. Discussed relevant duration. c. ABC?
information and confirmed that
the procurement is in accordance d. Contract
with the project procurement duration?
management plan (PPMP) and
5. From the Minutes of Pre- Did the
annual procurement plan (APP);
Procurement Conference look participants led
c. Discussed relevant for information on the by the BAC
information and confirmed presentation of the review of discuss and
the PPMP and APP, the confirm that the
readiness of the procurement at
deliberation thereon, and the procurement is in
hand on the following: conclusions reached as a result accordance with
c.1. the availability of of the deliberation; and the PPMP and
appropriations and analyze if they led to the APP?
programmed budget for confirmation of the
contract; procurement is in accordance
c.2. completeness of the with the PPMP and APP.
Bidding Documents and their
adherence to relevant general 6. From the Minutes of Pre- Did the
procurement guidelines;
for information on the by the BAC
d. Reviewed, modified and presentation of information, discuss and
agreed on the criteria for the deliberation thereon, and confirm that the
the conclusions reached as a procurement at
eligibility screening, evaluation,
result of the deliberation; and hand is ready as
and post-qualification; analyze if they led to the to:
f. Reviewed and adopted the confirmation of the readiness
of the procurement at hand as a. availability of
procurement schedule, including
to: appropriations
deadlines and timeframes, for a. availability of appropriations and
the different activities; and programmed budget programmed
g. Reiterated and emphasized for the contract, budget for the
b. completeness of the Bidding contract?
the importance of confidentiality
Documents and their
and the applicable sanctions and adherence to the Philippine b. completeness
penalties, as well as agreed on Bidding Documents (PBDs)/ of
measures to ensure compliance customized Bidding the Bidding
with the foregoing; Documents. Documents?
h. Confirmed that there was no c. adherence of

splitting; and the Bidding
Documents
i. identified the justification for with the
the change in the mode of PBDs/
procurement from public bidding customized
Bidding
to Negotiated Procurement and
Documents?
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agreed on the recommendations
to the HOPE.

Procurement of Goods Vol 2 published
by the GPPB:
Methodology: How is Negotiated
Procurement undertaken?

2. The BAC convenes the appropriate
officials for the pre-procurement
conference, if deemed necessary.

4. The procedures for the conduct of
public bidding should be observed.

September 2, 2009:
20.1. During the conference, the
participants, led by the BAC, shall:
a. Confirm the description and scope of
the contract, the ABC, and contract
duration;
b. Ensure that the procurement is in
accordance with the project and
annual procurement plans;
c. Determine the readiness of the
procurement at hand, including,
among other aspects, the following: 7. From the Minutes of Pre- Did the
i) availability of appropriations and Procurement Conference look participants led
programmed budget for the for information on the by the BAC
contract; presentation of the alternative discuss and
ii) completeness of the Bidding method of procurement, the confirm the
Documents and their adherence to deliberation thereon, and the justifications for
relevant general procurement conclusions reached as a result the change in the
guidelines; of the deliberation; and mode of
iii) analyze if they led to the procurement
iv) confirmation and of the from public
d. Review, modify and agree on the justifications for the change in bidding to
criteria for eligibility screening, the mode of procurement from Negotiated
evaluation, and post-qualification; public bidding to Negotiated Procurement and
e. Review and adopt the Procurement and agreed on agreed on the
procurement schedule, including the recommendations to the recommendation
deadlines and timeframes, for the HOPE. s to the HOPE?
different activities; and
f. Reiterate and emphasize the

importance of confidentiality and the
applicable sanctions and penalties,
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as well as agree on measures to 8. From the Minutes of Pre- Did the
ensure compliance with the Procurement Conference look participants led
foregoing. for information on the by the BAC
presentation of the criteria for discuss and
7.2. No procurement shall be eligibility screening, price confirm the
undertaken unless it is in accordance quotation evaluation, and criteria for:
with the approved APP of the post-qualification, the
procuring entity. The APP shall bear deliberation thereon, and the a. Eligibility
the approval of the Head of the conclusions reached as a result screening?
Procuring Entity or second-ranking of the deliberation; and
official designated by the Head of the analyze if they led to the b. Price
Procuring Entity to act on his behalf, confirmation of the criteria for Quotation
and must be consistent with its duly eligibility screening, price evaluation?
approved yearly budget. quotation evaluation, and
post-qualification. c. Post-
48.2. In accordance with Section 10 qualification?
Procuring Entities shall adopt public
bidding as the general mode of 9. From the Minutes of Pre- Did the
procurement and shall see to it that Procurement Conference look participants led
the procurement program allows for information on the by the BAC
sufficient lead time for such public presentation of the discuss and
bidding. Alternative methods shall be procurement schedule, confirm the
resorted to only in the highly including deadlines and adoption of the
exceptional cases provided for in this timeframes for the different procurement
Rule. activities, the no-contact rule, schedule
the deliberation thereon, and including
48.3. The method of procurement to the conclusions reached as a deadlines and
be used shall be as indicated in the result of the deliberation; and timeframes for
Approved Procurement Plan (APP). If analyze if they led to the the different
the original mode of procurement confirmation of the adoption of activities?
recommended in the APP was public the procurement schedule
bidding but cannot be ultimately including deadlines and
pursued, the BAC, through a timeframes for the different
Resolution, shall justify and activities.
the HOPE.


January 2009:
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the Answer
10. From the Minutes of Pre- Did the
4.2. To facilitate the immediate for information on the by the BAC
implementation of projects even reiteration and emphasis of reiterate and
pending approval of the GAA, the the importance of emphasize the
ABC shall be based on the budget confidentiality and the importance of
levels under the National applicable sanctions and confidentiality
Expenditure Program (NEP) penalties, as well as the and the
submitted to Congress. agreement on measures to applicable
4.3. For specifically appropriated ensure compliance. sanctions and
projects, agencies can proceed with penalties, as well
the procurement activities prior to as the agreement
issuance of the notice of award on measures to
using as basis the NEP figures. ensure
4.4. For lump-sum appropriations and compliance?
under the agencys budget, the head
of the agency shall identify and
thereafter notify the implementing
units (IUs) of the amount allocated
for the projects they are to
implement. On the basis of said
notification, the heads of the
respective IUs, as procuring entities,
can proceed with the procurement
activities prior to issuance of the
notice of award.
4.5. For Multi-Year Projects (MYPs), for
which the initial funding sourced
from either the existing/current
years budget or the NEP is not
sufficient to cover the total cost of
the project, it is required that a
issued in accord with DBM Circular
Letter 2004-012 prior to
commencement of any procurement
activity.
Thus, the MYOA shall be a pre-
requisite for procurement of a multi-
year contract. All procurement
activities should be within the total
project cost and categories reflected
in the MYOA issued by DBP for the
said MYP.
Chapter 8, Subtitle B, Title I, Book V
of the Administrative Code of 1987,
no contract involving the
expenditure of public funds shall be
entered into unless the proper
accounting official of the procuring
entity shall have certified as to the
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allotment to which the expenditure
or obligation may be properly
charged.
Definition:
3.1. Allotment - document issued by
the Department of Budget and
Management (DBM) which
obligations for a specified amount
as contained in a legislated
appropriation. The allotment
issued may either be trough the
Agency Budget Matrix (ABM)
which covers the comprehensive
release of specifically appropriated
items in the agencys budget or
3.2. Annual Procurement Plan (APP)

the requisite document that the
agency must prepare to reflect the
entire procurement activity (i.e.,
goods, services, civil works to be
procured) that it plans to
year. This document contains the
program/project;
3.2.2. Project management office or
end-user unit;
procurement;
adopted;
Contract.

following:
Section 2.1)
3.3.1. For specifically appropriated
items as reflected in the annual
budget of the national government
agency, the amount corresponding to
either the full cost of a single year
or multi-year program/project/
activity. For multi-year projects, for
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which a Multi-Year Obligational
Authority has been issued, the ABC
shall be the amount reflected in the
Multi-Year Obligational Authority.
Section 2.2)
institutions as well as LGUs, the ABC
represents the amount of fund
transfers which they receive from a
national government agency to
implement a program/project/activity.
3.9. National Expenditure Program

(NEP) the proposed national budget
submitted by the President to
Congress in accord with Section 22,
Article VII of the Constitution. The
NEP shall be the basis of the general
appropriations bill, which upon its
enactment, becomes the General

appropriate audit
contract;
c. etc.
recommendations Also refer to the
OFFENSES AND
Implementing Rules and Regulations PENALTIES portion of
(IRR) of RA 9184, as amended on this Audit Guide.
September 2, 2009:

instances of non-compliance and compliances to establish the Appropriate Audit Working Papers
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the Answer
develop appropriate audit cause(s) and develop
recommendations appropriate audit
recommendations.

of non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
3. To communicate the results of Prepare the appropriate audit/

the audit with the auditees validation document reflecting Audit Observation Memorandum (AOM), if
NEGOTIATED PROCUREMENT FOR GOODS

IV. APPROVAL OF THE ALTERNATIVE METHOD
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Two-Failed

Biddings) was in accordance with the rules and regulations
1. copy of the approved Minutes of Pre-Procurement Conference duly certified by the

BAC Secretariat
2. BAC Resolution recommending negotiated procurement, duly approved by the HOPE
Audit Sub-objective Audit Activities Suggested Audit Working Paper

Audit Criteria
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Audit Question Yes No Particulars
of the
Answer
1. To verify if through a 1. From the BAC Resolution, Did the BAC
Resolution the BAC presented look for information on the through a
two (2) failed biddings as the BACs justification, that is, two Resolution present
failed biddings and the two (2) failed
justification for the negotiated
recommendation for the biddings as the
procurement and recommended
change in the mode of justification for the
change in the mode of procurement to the HOPE for negotiated
procurement to the HOPE for approval. procurement and
approval recommend change
in the mode of
Implementing Rules and Regulations procurement to the
(IRR) of RA 9184, as amended on HOPE for approval?
September 2, 2009:
35.5. Should there occur a second

failure of bidding, the procuring entity
may resort to negotiated
procurement, as provided for in
53.1. Two Failed Biddings. Where

there has been failure of public
bidding for the second time as
provided in Section 35 of the Act and
this IRR.

the HOPE
a. recommended the alternative recommending Negotiated recommend the
mode of procurement: Procurement as the method alternative mode of
of procurement, look for the procurement:
Negotiated Procurement to the
approval of the HOPE. Negotiated
HOPE,
Procurement to the
and HOPE?
procurement Did the HOPE
approve Negotiated
Implementing Rules and Regulations Procurement as the
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
the HOPE.
appropriate audit
contract;
c. etc. NOTE:
September 2, 2009:

appropriate audit
recommendations
recommendations.

of non-compliance.
NOTE:
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Audit Sub-objective
Answer
Also refer to the
OFFENSES AND
this Audit Guide.


V. SELECTION OF SUPPLIERS AND REQUEST

FOR SUBMISSION OF PRICE QUOTATIONS
A. AUDIT OBJECTIVE:
To verify if the BAC selected and invited suppliers as required by regulations;

1. Minutes of the BACs meetings on the selection and invitation of contractors;
2. List of selected contractors to be invited;
3. Copies of invitation letters.
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Audit Question Yes No Particulars of
the Answer
1. To verify if the BAC used 1. From the Minutes of the BAC Did the BAC use
the Procuring Entitys registry meetings, TWG evaluation the Procuring
of suppliers as basis for reports supported with copies of Entitys registry of
the Procuring Entitys Registry suppliers who have
selecting the suppliers to be
of suppliers, look for information been classified
invited for the negotiations on the basis of identification of under the type of
the suppliers to be invited for contract/project
Implementing Rules and Regulations the negotiations and the list of where the subject
(IRR) of RA 9184, as amended on identified suppliers based on the contract falls, as
September 2, 2009: agreed-upon basis. one of the bases
53.1.2. The BAC shall invite and for selecting the
engage in negotiations with a suppliers to be
sufficient number of suppliers to invited for the
ensure effective competition. negotiations?
53.1.2.1.
shall maintain a registry of Did the BAC come
suppliers as basis for up with a list of
selecting the suppliers for suppliers to be
negotiations. invited as agreed
during the
meetings
conducted for the
purpose?
2. To verify if the BAC invited 2. Compare the names of the Did the BAC invite
all suppliers identified from suppliers to whom invitations and engage in
the Registry (ies) and other have been sent by the BAC (with negotiations with a
evidence of receipt) with the list sufficient number
bases adopted by the BAC for
of selected suppliers. of suppliers?
the purpose

September 2, 2009:
53.1.2. The BAC shall invite and
engage in negotiations with a
sufficient number of suppliers to
ensure effective competition.
the Request for Submission of request the BAC Secretariat for the Request for
Price Quotations advance information on the first Submission of Price
continuously in the PhilGEPS day of any posting. Quotations
continuously in
website and the website of 4. On the first day of posting the:
the procuring entity access the PhilGEPS website, the
concerned, if available, for 7 website of the procuring entity 1. PhilGEPS
calendar days starting on the concerned, if available. Print the website for 7
date of posting page where the notice was calendar days
posted (to form part of the audit starting on the
Implementing Rules and Regulations evidences). date of
(IRR) of RA 9184, as amended on advertisement?
September 2, 2009: 5. Access the websites at
54.2. For alternative methods of random during the 7-day period 2. website of the
procurement, advertisement and to verify the postings. procuring entity
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Audit Sub-objective Audit Activities Audit Question Yes No Particulars of
Audit Criteria the Answer
posting as prescribed in Section concerned, if
21.2.1 of this IRR may be OR available, for 7
dispensed with: Provided, From the printouts of the web calendar days
however, That the BAC, through pages indicating the dates of starting on the
its Secretariat, shall post the printing, obtained from and duly date of
invitation or request for certified by the BAC Secretariat advertisement?
submission of price quotations for as true and correct, compare
Shopping under Sections 52.1(b) these dates with the required
and Negotiated Procurement dates of posting.
under Sections 53.1 (two-failed
biddings) and 53.9 (small value
procurement) of this IRR in the
PhilGEPS website, the website of
the procuring entity concerned, if
available, and at any conspicuous
place reserved for this purpose in
the premises of the procuring
entity for a period of seven (7)
calendar days.
the Request for Submission of request the BAC Secretariat for the Request for
Price Quotations advance information on the first Submission of Price
continuously at any day of any posting. Quotations:
conspicuous place reserved 7. Conduct ocular inspection on 1. continuously for
for the purpose in the the first day of posting. seven (7) calendar
premises of the procuring days?
entity for 7 calendar days, as 8. Repeat the ocular inspections
certified by the head of the (may be at random) during the 2. at the
BAC Secretariat of the 7-day period to verify the conspicuous place
procuring entity postings. reserved for the
purpose in the
Implementing Rules and Regulations 9. Request for the certification of premises of the
(IRR) of RA 9184, as amended on the head of the BAC Secretariat. procuring entity?
September 2, 2009:
54.2. For alternative methods of 3. as certified by
procurement, advertisement and the head of the
posting as prescribed in Section BAC Secretariat of
21.2.1 of this IRR may be the procuring
dispensed with: Provided, entity?
however, That the BAC, through
its Secretariat, shall post the
invitation or request for
submission of price quotations for
Shopping under Sections 52.1(b)
and Negotiated Procurement
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calendar days.

non-compliance.
the contract; NOTE:
Also refer to the
c. etc.
OFFENSES AND
and develop appropriate PENALTIES portion of this
audit recommendations Audit Guide.
writing.

non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of this
Audit Guide.
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Accounts
NOTES:
1. Based on the following requirement of the Manual of Procedures for the

Procurement of Goods Vol 2 published by the GPPB:
o Methodology: How is Negotiated Procurement undertaken?

4. The procedures for the conduct of public bidding should be
observed.
for the rest of the procurement procedures up to the award of the contract, the
Audit Guide on the Procedures: Competitive/Public Bidding are to be observed
with particular attention given to compliance by the BAC of the following
provisions of the Revised IRR of RA 9184 during bid evaluation up to award:
53.1.4. Following completion of the negotiations, the procuring entity shall

request all suppliers remaining in the proceedings to submit, on a specified
date, a best and final offer with respect to all aspects of their proposals.
53.1.5. The procuring entity shall select the successful offer on the basis of such
best and final offers which should meet the procuring entitys minimum
technical requirements and should not exceed the ABC.
and to the following provision of the Revised IRR of RA 9184:
53.1.6. In all stages of the negotiations, observers shall be invited
2. Other relevant criteria
Implementing Rules and Regulations (IRR) of RA 9184, as amended on September

2, 2009:
53.1.3. Any requirements, guidelines, documents, clarifications, or other

information relative to the negotiations that are communicated by the
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procuring entity to a supplier shall be communicated on an equal basis to all
other suppliers engaging in negotiations with the procuring entity relative to
the procurement.
54.1. Splitting of Government Contracts is not allowed. Splitting of

Government Contracts means the division or breaking up of GOP contracts
into smaller quantities and amounts, or dividing contract implementation
into artificial phases or sub-contracts for the purpose of evading or
circumventing the requirements of law and this IRR, specially the necessity of
public bidding and the requirements for the alternative methods of
procurement.
54.4. Except for Limited Source Bidding under Section 49 of this IRR,
submission of bid securities may be dispensed with.
54.5. Performance and warranty securities, as prescribed in Sections 39 and 62

of this IRR, shall be submitted for contracts acquired through the alternative
methods of procurement, except for Shopping under Section 52 and
Negotiated Procurement under Sections 53.2 emergency cases), 53.9 (small
value procurement), 53.10 (lease of real property), and 53.13 (UN agencies).
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OF GOODS
EMERGENCY CASES
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EMERGENCY CASES

entity directly negotiates a contract with a technically, legally, and financially capable supplier.
It may be resorted to in emergency cases or in any of the following cases:

a. After 2 failed biddings,
f. NGO Participation,
I. APPROVAL OF THE ALTERNATIVE METHOD OF PROCUREMENT
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement in Emergency

Cases was in accordance with the rules and regulations

3. copy of the approved Minutes of Pre-Procurement Conference duly certified by the
BAC Secretariat;
4. BAC Resolution recommending negotiated procurement, duly approved by the HOPE;

Audit Sub-objective
Answer
1. To verify if the BAC validated 1. From the BAC Did the BAC
the existence of an emergency as Resolution, look for validation of an
follows: information on the BACs emergency as
validation of an follows:
a. imminent danger to life or
emergency as follows:
property during a state of
a. imminent danger to life a. imminent danger
calamity, or or property during a to life or property
b. time is of the essence arising state of calamity, or during a state of
from natural or man-made b. time is of the essence calamity?
calamities or other causes arising from natural or
where immediate action is man-made calamities or
necessary to prevent damage or other causes where b. time is of the
to or loss of life or property, or immediate action is essence arising
necessary to prevent from natural or
to restore vital public services,
damage to or loss of man-made
infrastructure facilities and life or property, or to calamities or other
other public utilities
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Audit Sub-objective
Answer
restore vital public causes where
services, infrastructure immediate action
facilities and other is necessary to
September 2, 2009:
public utilities prevent damage to
53.2. Emergency Cases. In case of or loss of life or
imminent danger to life or property property, or to
during a state of calamity, or when restore vital public
time is of the essence arising from services,
natural or man-made calamities or infrastructure
other causes where immediate action facilities and other
is necessary to prevent damage to or public utilities?
loss of life or property, or to restore
vital public services, infrastructure
facilities and other public utilities.
2. To verify if the BAC: 2. From the BAC Did the BAC validate
Resolution, look for the justification for
a. validated the justification for information on the adoption of the
adoption of the adoption of BACs validation of the alternative method of
Negotiated Procurement, an justification for procurement:
alternative method of adoption of the Negotiated
procurement, alternative method of Procurement?
b. validated that there was no procurement:
splitting, Negotiated
Procurement and Did the BAC validate
and
recommendation of that there was no
c. through a Resolution
said method to the splitting?
recommended said method HOPE for approval.
to the HOPE for approval
Did the BAC
Implementing Rules and Regulations recommend
(IRR) of RA 9184, as amended on Negotiated
September 2, 2009: Procurement, an
alternative method,
to the HOPE for
approval?
the HOPE.

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Audit Sub-objective
Answer
3. To verify if the HOPE 3. From the BAC Did the HOPE

approved the alternative method Resolution approve Negotiated
of procurement: Negotiated recommending the Procurement as the
negotiated procurement method of
Procurement
as an alternative method, procurement?
look for the approval of
the HOPE.
September 2, 2009:
the HOPE.
contract;
c. etc.
OFFENSES AND
PENALTIES portion
September 2, 2009:
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Audit Sub-objective
Answer
recommendations
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion

NOTES:
1. Based on the following requirement of the Manual of Procedures for the Procurement of
Goods Vol. 2 published by the GPPB:
o Methodology: How is Negotiated Procurement undertaken?

4. The procedures for the conduct of public bidding should be observed.
for the rest of the procurement procedures up to the award of the contract, the Audit
Guide on the Procedures: Competitive/Public Bidding are to be observed.

Implementing Rules and Regulations (IRR) of RA 9184, as amended on September 2, 2009:
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NEGOTIATED PROCUREMENT FOR

GOODS
AGENCY-TO-AGENCY
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AGENCY-TO-AGENCY
Negotiated Procurement may be resorted to in an agency-to-agency procurement or

in any of the following cases:
b. Emergency,
f. NGO Participation
Procurement of goods from another agency of the Government of the Philippines (GOP),
such as the Procurement Service, Department of Budget and Management (PS-DBM), which is
tasked with a centralized procurement of Common-Use Supplies for the GOP in accordance with
Letters of Instruction No. 755 and Executive Order No. 359, series of 1989.
For purposes of Section 53.5 of the Revised IRR of RA 9184, the term agency excludes
GOCCs incorporated under Batas Pambansa Blg. 68, otherwise known as the Corporation Code of
the Philippines.
NOTE:
No Audit Guide has been developed for this alternative method of

procurement since the GPPB has yet to issue the Guidelines pursuant
to the Revised IRR of RA 9184.
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GOODS
SMALL-VALUE PROCUREMENT
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SMALL- VALUE PROCUREMENT
Negotiated Procurement may be resorted to in a small value procurement or in any

of the following cases:

e. NGO Participation
f. United Nations Agencies.
Small-Value Procurement - Where the procurement does not fall under Shopping in Section
52 of the Revised IRR of RA 9184 and the amount involved does not exceed the thresholds
prescribed in Annex H of said IRR, the procuring entity shall draw up a list of at least three (3)
suppliers of known qualifications which will be invited to submit proposals.
The thresholds for this method of procurement are:
a) For NGAs, GOCCs, GFIs, and SUCs, Five Hundred Thousand Pesos (P500,000).
b) For LGUs, in accordance with the following schedule:
Maximum Amount (in Philippine Peso)

DOF Classification of LGUs Province City Municipality
1st Class 500,000 500,000 100,000
2nd Class 500,000 500,000 100,000
3rd Class 500,000 400,000 100,000
4th Class 400,000 300,000 50,000
5th Class 300,000 200,000 50,000
6th Class 200,000 100,000 50,000
In the case of barangays, Fifty Thousand Pesos (P50,000).
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A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Small-Value Procurement was in

accordance with the rules and regulations

3. evidences to support that procurement does not fall under Shopping in Section 52 of the
IRR;
6. BAC Resolution recommending the alternative method of procurement: Small-Value
Procurement, duly approved by the HOPE.

Audit Sub-objective
Answer
procurement per APP was documents and minutes of procurement per
of the BACs meetings APP was public
and relevant BAC bidding but cannot be
ultimately pursued;
Resolution(s), look for ultimately pursued?
b. the existence of the conditions information on the BACs
to justify Small-Value validation that the
Procurement: original mode of Did the BAC validate
b.1. procurement does not procurement per APP the existence of the
fall under Shopping in was public bidding but conditions to justify
Section 52 of the IRR; cannot be ultimately Small-Value
pursued and of the Procurement:
b.2. the amounts involved did existence of the
not exceed the thresholds conditions to justify a. procurement does
in Annex H of the Small-Value not fall under
Revised IRR of RA 9184. Procurement. Shopping in
c. that there was not splitting Section 52 of the
IRR?
(IRR) of RA 9184, as amended on Or
September 2, 2009: b. the amounts
involved did not
48.3. The method of procurement to exceed the
be used shall be as indicated in the thresholds in
Approved Procurement Plan (APP). If Annex H of the
the original mode of procurement Revised IRR of RA
9184?
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Audit Sub-objective
Answer
recommended in the APP was public Did the BAC validate
bidding but cannot be ultimately that there was not
pursued, the BAC, through a splitting?
the HOPE.
52.1. Shopping is a method of

procurement of goods whereby the
procuring entity simply requests for
the submission of price quotations for
readily available off-the-shelf goods
or ordinary/regular equipment to be
procured directly from suppliers of
known qualifications. This method of
procurement shall be employed in
any of the following cases:
a) When there is an unforeseen

contingency requiring immediate
purchase: Provided, however, That
the amount shall not exceed the
thresholds prescribed in Annex H
of the Revised IRR or RA 9184.
b) Procurement of ordinary or regular

office supplies and equipment not
available in the Procurement Service
involving an amount not exceeding
the thresholds prescribed in Annex
H of this IRR.
52.2. The phrase ordinary or regular

office supplies shall be understood
to include those supplies,
commodities, or materials which,
depending on the procuring entitys
mandate and nature of operations,
are necessary in the transaction of its
official businesses, and consumed in
the day-to-day operations of said
procuring entity. However, office
supplies shall not include services
such as repair and maintenance of
equipment and furniture, as well as
trucking, hauling, janitorial, security,
and related or analogous services.
53.9. Small Value Procurement.

Where the procurement does not fall
under Shopping in Section 52 of this
IRR and the amount involved does
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Audit Sub-objective
Answer
not exceed the thresholds prescribed
in Annex H of this IRR.

a. recommended the alternative recommending Small-Value recommend the
mode of procurement: Small- Procurement as the method alternative mode of
of procurement, look for procurement: Small-
Value Procurement to the
the approval of the HOPE. Value Procurement to
HOPE, the HOPE?
and
alternative method of Did the HOPE
procurement approve Small-Value
Procurement as the
Implementing Rules and Regulations method of
(IRR) of RA 9184, as amended on procurement?
September 2, 2009:
the HOPE.

appropriate audit
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Audit Sub-objective
Answer
resulting contract; taken by the auditee in
b. validity of any payment to be compliance.
contract;
c. etc.
NOTE:
Also refer to the
recommendations
OFFENSES AND
Implementing Rules and Regulations PENALTIES portion of
(IRR) of RA 9184, as amended on this Audit Guide.
September 2, 2009:
instances of non-compliance and non-compliances to establish Appropriate Audit Working Papers
develop appropriate audit the cause(s) and develop
appropriate audit
recommendations
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

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II. PRICE QUOTATIONS AND ACCEPTANCE OF OFFER
A. AUDIT OBJECTIVE
To verify if the Procuring Entity conducted Small-Value Procurement as required by

regulations

1. evidences that the suppliers identified were bona fide;
2. copy of the requests for price quotations duly received by the suppliers;
stated in the RFQ;
7. documentation of the acceptance of the offer.
9. notice of award;

the Answer
1. To verify if the Procuring 1. From the documentation Did the
Entity obtained price of the evaluation conducted procurement unit
quotations (RFQs) from at by the procurement unit of of the Procuring
the Procuring Entity, with Entity obtain price
least three (3) bona fide
suppliers
for information on whether least 3 bona fide
price quotations were suppliers?
Implementing Rules and Regulations obtained from at least 3
(IRR) of RA 9184, as amended on bona fide suppliers.
September 2, 2009:

draw up a list of at least three (3)
suppliers, of known qualifications
which will be invited to submit
proposals,
2. For procurement with an 2. Ahead of the Did the

ABC of more than Php procurement, request the procurement unit
50,000.00, To verify if the procuring entity for advance of the Procuring
information on the schedule Entity post the
of any posting. notice of award in:
RFQs in:
a. the PhilGEPS,
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the Answer
b. the website of the 3. Access the PhilGEPS a. the PhilGEPS
procuring entity, if website, the website of the for a period of 7
available procuring entity concerned, calendar days?
if available and print the
c. any conspicuous place in
page where the notice was b. the website of
the premises of the posted (to form part of the the procuring
procuring entity audit evidences). entity for a
for a period of 7 calendar period of 7
days 4. Conduct ocular calendar days?
inspection on the schedule
Guidelines for Shopping and Small of posting. c. any
Value Procurement covered by GPPB conspicuous
Resolution No. 09-2009, dated 23 place in the
November 2009: premises of the
procuring entity
1. . . . for a period of 7
2. . . . calendar days?

applicable:
i.
50,000.00) and below.

entity prepared an Abstract of Quotations and check for procurement unit
Quotations after the deadline the indication of the lowest of the Procuring
Abstract of
quotations and determined 6. Compare the date of the Quotations?
the lowest quotation Abstract of Quotations with
the deadline for submission Did the
Guidelines for Shopping and Small of price quotations as procurement unit
Value Procurement covered by GPPB indicated in the RFQs. of the Procuring
Quotations after
1. . . . the deadline for
2. . . . submission of price
3. Procedural Guidelines quotations?

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the Answer
e. After the deadline for
submission of price quotations, Did the
an Abstract of Quotations shall procurement unit
be prepared setting forth the of the Procuring
names of those who responded Entity determine
to the RFQ, their corresponding the lowest
price quotations, and the lowest quotation?
entity made the award of supplier with the lowest entity award the
Abstract of Quotation with lowest quotation
the name of supplier who which complied
was awarded the contract. with the
stated in the RFQ 8. From the documentation other terms and
of the evaluation of price conditions stated in
Guidelines for Shopping and Small quotations conducted by the the RFQ?
Value Procurement covered by GPPB procuring entity, look for the
Resolution No. 09-2009, dated 23 verification on the
November 2009: compliance with the
specifications and other
1. . . . terms and conditions stated
2. . . . in the RFQ.

for goods which complies with
the RFQ.
5. For procurement with an 9. Ahead of the Did the procuring
ABC of more than Php procurement, request the entity post the
50,000.00, To verify if the procuring entity for advance award in:
information on the schedule
of any posting. a. the PhilGEPS?
award in:
a. the PhilGEPS, 10. Access the PhilGEPS b. the website of
b. the website of the website, the website of the the procuring
procuring entity, if procuring entity concerned, entity?
available if available and print the
c. any conspicuous place in page where the award was c. any
the premises of the posted (to form part of the conspicuous
procuring entity audit evidences). place in the
premises of
Guidelines for Shopping and Small 11. Conduct ocular the procuring
Value Procurement covered by GPPB inspection on the schedule entity?
Resolution No. 09-2009, dated 23 of posting.
November 2009:
1. . . .
2. . . .
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the Answer


appropriate audit
the contract;
c. etc.
OFFENSES AND
Observers shall be invited at least
three (3) calendar days before the
date of the procurement
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
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the Answer
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
Other criteria:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of bid
securities may be dispensed with.
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GOODS
DEFENSE COOPERATION
AGREEMENT
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DEFENSE COOPERATION AGREEMENT

entity directly negotiates a contract with a technically, legally, and financially capable supplier. It
may be resorted to in any of the following cases: (1) Two Failed Biddings, (2) Emergency Cases,
(3) Agency-to-Agency, (4) Procurement Agent, (5) Defense Cooperation Agreement, (6) Small-
Value Procurement, (7) NGO Participation, (8) United Nations Agencies.
Defense Cooperation Agreement - Upon prior approval by the President of the Philippines,
and when the procurement for use by the AFP involves major defense equipment or materiel
and/or defense-related consultancy services, when the expertise or capability required is not
available locally, and the Secretary of National Defense has determined that the interests of the
country shall be protected by negotiating directly with an agency or instrumentality of another
country with which the Philippines has entered into a defense cooperation agreement or otherwise
maintains diplomatic relations: Provided, however, That the performance by the supplier of its
obligations under the procurement contract shall be covered by a performance security in
accordance with Section 39 of the Revised IRR of RA 9184.
NOTE:
The Audit Guide on Direct Contracting may be used as reference, to consider the following
criteria embodied in Section 53.8 of the Revised IRR of RA 9184:
1. There is prior approval by the President of the Philippines,
2. The procurement is by the AFP and involves major defense equipment or materiel;
3. The Secretary of National Defense has determined that the interests of the country
shall be protected by negotiating directly with an agency or instrumentality of another
country with which the Philippines has entered into a defense cooperation agreement
or otherwise maintains diplomatic relations;
4. the performance by the supplier of its obligations under the procurement contract
shall be covered by a performance security in accordance with Section 39 of the
Revised IRR of RA 9184
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GOODS
UNITED NATIONS AGENCIES

FOR GOODS
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UNITED NATIONS AGENCIES
Negotiated Procurement is a method of procurement of goods whereby the procuring entity

directly negotiates a contract with a technically, legally, and financially capable supplier in any of the
following cases: (1) Two Failed Biddings, (2) Emergency Cases, (3) Agency-to-Agency, (4) Procurement
Agent, (5) Defense Cooperation Agreement, (6) Small-Value Procurement, (7) NGO Participation, (8)
United Nations Agencies.
United Nations Agencies - Procurement from specialized agencies of the United Nations of any
of the following:
(a) small quantities of off-the-shelf goods, primarily in the fields of education and health; and
(b) specialized products where the number of suppliers is limited, such as vaccines or drugs.
NOTE:
No Audit Guide has been developed for this method of procurement in the
absence of regulations specifying the requirements and the related procedures.
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PROCUREMENT OF INFRASTRUCTURE PROJECTS
I. PREPARATORY ACTIVITY: BIDDING DOCUMENTS
A. AUDIT OBJECTIVE:
To verify if the Bidding Documents for the specific procurement followed the standard forms
and manuals prescribed by the Government Procurement Policy Board (GPPB)
Document needed for evaluation:
1. The procuring entitys Customized Bidding Documents for Infrastructure Projects;


the Answer
procurement include the Documents and the results Information
information and are
according to the forms these are compliant with the a. Approved Budget
indicated in the Philippine Bidding for the Contract?
Customized Bidding Documents for the
Documents approved by Procurement of b. Invitation to Bid?
the GPPB or the Philippine Infrastructure Projects and
Bidding Documents for the Section 17.1 of the c. Eligibility
Procurement of Implementing Rules and Requirements?
Infrastructure Projects, 3rd Regulations of RA 9184,
secure from the BAC d. Instruction to
Edition (October 2009) Bidders, including
Secretariat duly certified
issued by the GPPB and - scope of bid?
copies of the Bidding
Section 17 of the Documents for the specific
Implementing Rules and procurement and compare - documents
Regulations of RA 9184 as these with the customized comprising the
amended on September 2, Bidding Documents of the bid?
2009: procuring entity.
- criteria for
If the customized eligibility?
Contract;
Bidding Documents are not
b. Invitation to Bid; - bid evaluation
compliant, compare the
c. Eligibility methodology/
procurement-specific Bidding
Requirements; Documents with the criteria?
d. Instruction to Bidders, Philippine Bidding
including scope of bid, Documents for the - post-
documents comprising Procurement of qualification
Infrastructure Projects methodology?
eligibility, bid issued by the GPPB.
- date of the pre-
evaluation bid conference?
accordance with the
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the Answer
Act, and post- - time of the pre-
qualification, as well as bid conference?
the date, time and
- Place of the
pre-bid
conference (where conference?
of bids and opening of - Deadline for
bids; submission of
e. Scope of work, where bids?
applicable;
f. Plans/Drawings and - Place of
Technical submission of
bids?
Specifications;
g. Form of Bid, Price Form,
- Date of opening
and List of Goods; of bids?
h. Delivery Time or
Completion Schedule; - Time of opening
i. Form, Amount, and of bids?
Validity Period of Bid
Security; - Place of opening
j. Form, Amount, and of bids?
Validity of Performance
e. Scope of work?
Security and Warranty;
and f. Plans/Drawings
l. Form of Contract and and Technical
General and Special Specifications?
Conditions of Contract.
g. Form of Bid, Price
Implementing Rules and Form, and Bill of
Regulations (IRR) of RA 9184, as Quantities?
17.1. The Bidding Documents h. Completion
shall be prepared by the Schedule?
standard forms and manuals i. Form, Amount, and
prescribed by the GPPB. Validity Period of
a. Approved Budget for the Bid Security?
Contract;
b. Invitation to Bid; j. Form, Amount, and
c. Eligibility Requirements; Validity of
d. Instruction to Bidders, Performance
including scope of bid, Security and
documents comprising the Warranty?
evaluation k. Form of Contract
methodology/criteria in and General and
accordance with the Act, and Special Conditions
post-qualification, as well as of Contract?
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the Answer
the date, time and place of Are the Bidding
the pre-bid conference Documents in the
(where applicable), required form:
opening of bids; a. Invitation to Bid?
e. Scope of work, where
applicable; b. Instructions to
f. Plans/Drawings and Bidders?
Technical Specifications;
g. Form of Bid, Price Form, and c. Bid Data Sheet?
Bill of Quantities;
h. Completion Schedule; d. General Conditions
i. Form, Amount, and Validity of the Contract?
j. Form, Amount, and Validity of e. Special Conditions
Performance Security and of Contract?
Warranty; and
k. Form of Contract and General f. Schedule of
and Special Conditions of Requirements?
Contract.
g. Technical
GPPB Resolution No. 05-2009 Specifications?
dated 30 September 2009:
all branches, agencies, h. Bidding Forms?
mandated to use the Philippine
Bidding Documents Third
Edition for all of their

appropriate audit
resulting contract;
of the contract;
c. etc.
NOTE:
and develop appropriate Also refer to the
audit recommendations OFFENSES AND
Implementing Rules and this Audit Guide.
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the Answer
2009:
Observers shall be invited at
procurement stage/activity.
The absence of observers will
not nullify the BAC
they have been duly invited
in writing.

appropriate audit
appropriate audit
recommendations.
recommendations
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

the auditees Management reflecting the results of the
COA Circular No. 2009-006 to Management
of Accounts
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II. PREPARATORY ACTIVITY: PRE-PROCUREMENT CONFERENCE
(For procurement of infrastructure projects costing more than P5 million)
specifications, the Approved Budget for the Contract (ABC), the applicability and appropriateness
of the recommended method of procurement and the related milestones, the bidding documents,
and availability of the pertinent budget release for the project.
Awards Committee (BAC), performed the required tasks and attained the objectives of the
Conference.

Secretariat;
3. Duly certified copies of the documents (Office Orders, contracts, Organizational/Functional
Charts, etc) which the BAC Secretariat used as bases for identifying and notifying the
participants to the Pre-Procurement Conference, including duly certified copies of the
notices issued with evidence of receipt by the participants.

Audit Activities
Audit Criteria Audit Question Yes No Particulars of the
Answer
1. To verify if the BAC 1. Secure from the BAC Did the BAC conduct
conducted the Pre- Secretariat a duly certified the Pre-Procurement
Procurement Conference copy of the Minutes of Pre- Conference prior to
prior to the advertisement or Procurement Conference the advertisement or
and compare the date the issuance of the
the issuance of the Invitation conference was held with Invitation to Bid?
to Bid the date indicated in the
newspaper or in the print-
Implementing Rules and Regulations out of website page where
(IRR) of RA 9184, as amended on Invitation to Bid was
September 2, 2009: published/posted.
through its Secretariat shall call for
a Pre-Procurement Conference.
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Audit Activities
Answer
2. To verify if the participants 2. Secure from the BAC Did the participants to
to the Pre-Procurement Secretariat duly certified the Pre-Procurement
Conference included the BAC, copies of the documents Conference include
(Office Orders, contracts, the:
the Secretariat, the unit or
Organizational/Functional
officials, including Charts, etc) which it used as a. BAC?
consultants hired by the bases for identifying and
procuring entity, who notifying the participants to b. Secretariat?
prepared the Bidding the Pre-Procurement
Documents and the draft Conference, including duly c. unit or officials
Invitation to Bid certified copies of the who prepared the
notices issued with evidence Bidding
Implementing Rules and Regulations of receipt by the Documents and
(IRR) of RA 9184, as amended on participants. the draft Invitation
September 2, 2009: to Bid?
20.1. The pre-procurement 3. From the Minutes of Pre-
conference shall be attended by Procurement Conference d. consultants hired
the BAC, the Secretariat, the unit look for the names of the by the procuring
or officials, including consultants members of the BAC, the entity, who
hired by the procuring entity, who members of the Secretariat, prepared the
prepared the Bidding Documents the officials and/or Bidding
and the draft Invitation to Bid, for consultants who prepared Documents and
each procurement. the Bidding Documents and the draft Invitation
the draft Invitation to Bid. to Bid?
3. To verify if during the Pre- 4. From the Minutes of Pre- Did the participants
Procurement Conference the Procurement Conference led by the BAC
participants, led by the BAC, look for information on the discuss and confirm
presentation of the scope of the:
performed the following
the contract, the ABC, and
tasks and attained the related contract duration, the a. Description of the
objectives: deliberation thereon, and scope of the
a. Discussed relevant the conclusions reached as a contract?
information and confirmed result of the deliberation;
and analyze if they led to b. ABC?
the description of the scope
the confirmation of the
of the contract, the ABC, and description of the scope of c. Contract duration?
contract duration; the contract, the ABC, and
b. Discussed relevant the contract duration.
that the procurement is in
accordance with the project
procurement management
procurement plan (APP);
c. Discussed relevant
readiness of the procurement
at hand on the following:
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Audit Activities
Answer
c.1. the availability of 5. From the Minutes of Pre- Did the participants
appropriations and Procurement Conference led by the BAC
programmed budget for look for information on the discuss and confirm
presentation of the review of that the:
contract;
the PPMP and APP, the
c.2. completeness of the deliberation thereon, and a. procurement is in
Bidding Documents and the conclusions reached as a accordance with
their adherence to relevant result of the deliberation; the PPMP and
general procurement and analyze if they led to APP?
guidelines; the confirmation if the
c.3. completion of the procurement is in b. appropriations
detailed engineering accordance with the PPMP and programmed
according to the prescribed and APP and availability of budget for the
appropriations and contract are
standards in the case of
programmed budget for the available?
infrastructure projects; contract.
c.4. confirmation of the
availability of ROW and the
ownership of affected 6. From the Minutes of Pre- Did the participants
properties. Procurement Conference led by the BAC
d. Reviewed, modified and look for information on the discuss and confirm
agreed on the criteria for presentation of information, that the procurement
the deliberation thereon, at hand is ready as
eligibility screening,
and the conclusions reached to:
evaluation, and post- as a result of the
qualification; deliberation; and analyze if a. availability of
f. Reviewed and adopted they led to the confirmation appropriations and
the procurement schedule, of the readiness of the programmed
including deadlines and procurement at hand as to: budget for the
timeframes, for the different a. availability of contract?
activities; and appropriations and
programmed budget for b. completeness of
g. Reiterated and the contract, the Bidding
emphasized the importance b. completeness of the Documents?
of confidentiality and the Bidding Documents and
applicable sanctions and their adherence to the c. adherence of the
penalties, as well as agreed Philippine Bidding Bidding
on measures to ensure Documents (PBDs)/ Documents with
compliance with the customized Bidding the PBDs/
foregoing. Documents, customized
c. completion of the detailed Bidding
Implementing Rules and Regulations engineering according to Documents?
(IRR) of RA 9184, as amended on the prescribed standards;
September 2, 2009: d. availability of ROW and d. completion of the
20.1. During the conference, the the ownership of affected detailed
participants, led by the BAC, shall: properties. engineering
a. Confirm the description and scope according to the
of the contract, the ABC, and prescribed
contract duration; standards?
b. Ensure that the procurement is in
accordance with the project and
e. availability of ROW
annual procurement plans;
and the ownership
c. Determine the readiness of the
of affected
procurement at hand, including,
properties?
among other aspects, the following:
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Audit Activities
Answer
i) availability of appropriations 7. From the Minutes of Pre- Did the participants
and programmed budget for Procurement Conference led by the BAC
the contract; look for information on the discuss and confirm
ii) completeness of the Bidding presentation of the criteria the criteria for:
Documents and their for eligibility screening, bid
adherence to relevant evaluation, and post- a. Eligibility
general procurement qualification, the deliberation screening?
guidelines; thereon, and the conclusions
iii) completion of the detailed reached as a result of the b. Bid evaluation?
engineering according to deliberation; and analyze if
the prescribed standards in they led to the confirmation c. Post-qualification?
the case of infrastructure of the criteria for eligibility
projects; screening, bid evaluation,
iv) confirmation of the and post-qualification.
availability of ROW and the
ownership of affected 8. From the Minutes of Pre- Did the participants
properties. Procurement Conference led by the BAC
d. Review, modify and agree on look for information on the discuss and confirm
the criteria for eligibility presentation of the the adoption of the
screening, evaluation, and post- procurement schedule, procurement schedule
qualification; including deadlines and including deadlines
e. Review and adopt the timeframes for the different and timeframes for
procurement schedule, including activities, the no-contact the different
deadlines and timeframes, for rule, the deliberation activities?
the different activities; and thereon, and the conclusions
f. Reiterate and emphasize the reached as a result of the
importance of confidentiality deliberation; and analyze if
and the applicable sanctions they led to the confirmation
and penalties, as well as agree of the adoption of the
on measures to ensure procurement schedule
compliance with the foregoing. including deadlines and
timeframes for the different
7.2. No procurement shall be activities.
accordance with the approved 9. From the Minutes of Pre- Did the participants
APP of the procuring entity. The Procurement Conference led by the BAC
APP shall bear the approval of look for information on the reiterate and
the Head of the Procuring Entity reiteration and emphasis of emphasize the
or second-ranking official the importance of importance of
designated by the Head of the confidentiality and the confidentiality and
Procuring Entity to act on his applicable sanctions and the applicable
behalf, and must be consistent penalties, as well as the sanctions and
with its duly approved yearly agreement on measures to penalties, as well as
budget. ensure compliance. the agreement on
measures to ensure
GPPB Circular 01-2009 dated 20 compliance?
January 2009:

pending approval of the GAA,
the ABC shall be based on the
budget levels under the National
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Commission on Audit
Audit Activities
Answer
figures.
head of the agency shall
identify and thereafter notify the
amount allocated for the
projects they are to implement.
On the basis of said notification,
the heads of the respective IUs,
as procuring entities, can
proceed with the procurement
notice of award.
project, it is required that a
commencement of any
categories reflected in the
MYOA issued by DBM for the
said MYP.
public funds shall be entered
into unless the proper
accounting official of the
procuring entity shall have
certified as to the availability of
funds and the allotment to
which the expenditure or
obligation may be properly
charged.
Definition:
3.1. Allotment - document
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Commission on Audit
Audit Activities
Answer
issued by the Department of
Budget and Management
(DBM) which authorizes an
agency to incur obligations for
a specified amount as
contained in a legislated
issued may either be trough
the Agency Budget Matrix
(ABM) which covers the

(APP) the requisite
must prepare to reflect the
works to be procured) that it
plans to undertake within the
calendar year. This document
contains the following
information:
program/project;
3.2.2. Project management
office or end-user unit;
procurement;
3.2.4. Procurement method to
be adopted;
Contract.

following:
NGs including SUCs (referred to
in Section 2.1)
appropriated items as reflected
in the annual budget of the
national government agency, the
amount corresponding to either
the full cost of a single year or
multi-year program/project/
activity. For multi-year projects,
for which a Multi-Year
Obligational Authority has been
issued, the ABC shall be the
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Audit Activities
Answer
amount reflected in the Multi-
Section 2.2)
3.5. Lump-Sum Appropriations

and Centrally Management Items
(CMIs) those itme in the
budget of agencies for which the
Implementing Units and the
specific amounts allocated for
each have not been identified in
the National Expenditure
Program (NEP) or the General

agencies in order to authorize
the latter to enter into multi-year
A MYOA, which contains an
annual breakdown of the full
project cost, obligates agencies
to include in their budget
proposal for the ensuring years
the amount programmed for the
said year(s).

Constitution. The NEP shall be
the basis of the general
appropriations bill, which upon
its enactment, becomes the
General Appropriations Act
(GAA).

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Audit Activities
Answer
resulting contract;
b. validity of any payment to regard to instances of
be made on the basis of non-compliance.
the contract;
c. etc.
OFFENSES AND
invited in writing.

recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion

auditees Management reflecting the results of
Accounts
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III. ADVERTISING AND POSTING OF THE INVITATION TO BID
(For procurement of infrastructure projects costing more than P5 million)
Advertising and posting are conducted to ensure transparency of the procurement

process, widest possible dissemination to increase the number of prospective bidders, and
intensify competition for the procurement activity or project
A. AUDIT OBJECTIVE:
To verify if the Invitation to Bid was advertised and posted in the media and within the
specified time as required

1. Entire page of the newspaper where the Invitation to Bid was advertised;
2. Document used by the BAC Secretariat to verify from the publisher the extent of
circulation of the newspaper and the first day of its publication;
3. Printout of the web page where the Invitation to Bid was posted in the PhilGEPS website,

the Answer
1. To verify if the BAC 1. From the entire page of Did the BAC advertise
advertised the Invitation to the newspaper where the the Invitation to Bid
Bid in a newspaper of Invitation to Bid was in a newspaper of
advertised, to be submitted general nationwide
general nationwide
to the Auditor on the day of circulation which has
circulation which has been advertisement, validate the been regularly
regularly published for at advertisement. published for at least
least 2 years before the date 2 years before the
of issue of the advertisement 2. From the verification date of issue of the
document obtained by the advertisement?
Implementing Rules and Regulations BAC Secretariat from the
(IRR) of RA 9184, as amended on publisher, check the extent
September 2, 2009: of circulation of the
21.2.1. Except as otherwise newspaper and the first day
provided in Sections 21.2.2 and of publication.
goods and supplies, the Request
for Expression of Interest shall be:
the advertisement
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the Answer
continuously in the PhilGEPS BAC Secretariat for advance continuously in the:
of any posting. 1. PhilGEPS website
procuring entity concerned, for 7 calendar
if available, and the website 4. On the first day of posting days starting on
prescribed by the foreign access the PhilGEPS website, the date of
government/foreign or the website of the procuring advertisement?
international financing entity concerned, if
institution, if applicable, for available, and website 2. website of the
7 calendar days starting on prescribed by the foreign procuring entity
the date of advertisement government/ foreign or concerned, if
international financing available, for 7
Implementing Rules and Regulations institution, if applicable. calendar days
(IRR) of RA 9184, as amended on Print the page where the starting on the
September 2, 2009: notice was posted (to form date of
21.2.1. Except as otherwise part of the audit evidences). advertisement?
54.2 of this IRR and for the 5. Access the websites at 3. website prescribed
procurement of common-use random during the 7-day by the foreign
goods and supplies, the Invitation period to verify the postings. government/
to Bid shall be: foreign or
c. OR international
b. Posted continuously in the From the printouts of the financing
PhilGEPS website, the website web pages indicating the institution, if
of the procuring entity dates of printing, obtained applicable, for 7
concerned, if available, and the from and duly certified by calendar days
website prescribed by the the BAC Secretariat as a true starting on the
foreign government/foreign or and correct, compare these date of
international financing dates with the required advertisement?
institution, if applicable, for 7 dates of posting.
the Invitation to Bid procurement, request the Invitation to Bid:
continuously at any BAC Secretariat for advance
information on the first day 1. continuously for
of any posting. seven (7) calendar
for the purpose in the
days?
premises of the procuring 7. Conduct ocular inspection
entity for 7 calendar days, as on the first day of posting. 2. at the conspicuous
certified by the head of the place reserved for the
BAC Secretariat of the 8. Repeat the ocular purpose in the
procuring entity inspections (may be at premises of the
random) during the 7-day procuring entity?
Implementing Rules and Regulations period to verify the postings.
(IRR) of RA 9184, as amended on 3. as certified by the
September 2, 2009: 9. Request for the head of the BAC
21.2.1. Except as otherwise certification of the head of Secretariat of the
provided in Sections 21.2.2 and the BAC Secretariat. procuring entity?
to Bid shall be:
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Prepared by:
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the Answer
a.
b.
entity.

appropriate audit
outputs including the Also determine if
contract;
b. validity of any payment to compliance.
the contract;
c. etc.
NOTE:
three (3) calendar days before
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
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Prepared by:
Commission on Audit
the Answer
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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Prepared by:
Commission on Audit
(For procurement of infrastructure projects costing P5 million and below)
A. AUDIT OBJECTIVE:
To verify if the Invitation to Bid was posted in the media as required and within the specified
time

1. Printouts (duly certified by the BAC Secretariat as true and correct) of the web pages
where the Invitation to Bid was posted in the PhilGEPS website, the website of the
procuring entity concerned, if available, and website prescribed by the foreign
government/ foreign or international financing institution, if applicable, for every day of
the posting, indicating the dates of printing

the Answer
continuously in the PhilGEPS BAC Secretariat for continuously in the:
the first day of any 1. PhilGEPS website
procuring entity concerned, if
posting. for 7 calendar
available, and the website days starting on
prescribed by the foreign 2. On the first day of the date of
government/foreign or posting access the advertisement?
international financing PhilGEPS website, the
institution, if applicable, for 7 website of the procuring 2. website of the
calendar days starting on the entity concerned, if procuring entity
date of advertisement available, and website concerned, if
prescribed by the foreign available, for 7
Implementing Rules and Regulations government/ foreign or calendar days
(IRR) of RA 9184, as amended on international financing starting on the
September 2, 2009: institution, if applicable. date of
21.2.1. Except as otherwise Print the page where the advertisement?
provided in Sections 21.2.2 and notice was posted (to
54.2 of this IRR and for the form part of the audit 3. website prescribed
procurement of common-use goods evidences). by the foreign
and supplies, the Invitation to Bid government/
shall be: 3. Access the websites at foreign or
d. random during the 7-day international
b. Posted continuously in the period to verify the financing
PhilGEPS website, the website of postings. institution, if
the procuring entity concerned, if applicable, for 7
available, and the website OR calendar days
prescribed by the foreign From the printouts of the starting on the
government/foreign or web pages indicating the date of
international financing institution, dates of printing, obtained advertisement?
if applicable, for 7 calendar days from and duly certified by
starting on the date of the BAC Secretariat as a
advertisement true and correct, compare
these dates with the
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the Answer
required dates of posting.
the Invitation to Bid procurement, request the Invitation to Bid:
continuously at any BAC Secretariat for
advance information on 1. continuously for
the first day of any seven (7) calendar
for the purpose in the
posting. days?
entity for 7 calendar days, as 5. Conduct ocular 2. at the conspicuous
certified by the head of the inspection on the first day place reserved for the
BAC Secretariat of the of posting. purpose in the
procuring entity premises of the
6. Repeat the ocular procuring entity?
Implementing Rules and Regulations inspections (may be at
(IRR) of RA 9184, as amended on random) during the 7-day 3. as certified by the
September 2, 2009: period to verify the head of the BAC
21.2.1. Except as otherwise postings. Secretariat of the
provided in Sections 21.2.2 and procuring entity?
54.2 of this IRR and for the 7. Request for the
procurement of common-use goods certification of the head of
and supplies, the Invitation to Bid the BAC Secretariat.
shall be:
a.
b.
entity.

the contract;
c. etc.
OFFENSES AND
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the Answer
invited in writing.

recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion

Accounts
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V. ISSUANCE OF BIDDING DOCUMENTS FOR THE PROCUREMENT OF
The bidding documents must be made available to the prospective bidders from the time
the Invitation to Bid is advertised until immediately before the deadline for submission of bids.
A. AUDIT OBJECTIVE:
To determine whether the prescribed procedures and timelines in the issuance of bidding
documents were followed

2. Printouts (duly certified by the BAC Secretariat as true and correct) of the web pages
where the Bidding Documents were posted in the PhilGEPS website, the website of the
procuring entity concerned, if available, and website prescribed by the foreign
government/ foreign or international financing institution, if applicable, for every day of
the posting, indicating the dates of printing;

the Answer
observed the time required in availability of the Bidding the bidding
making the Bidding Documents indicated in the documents
Documents available, that is, Invitation to Bid with the available from the
dates of the daily printouts of time the Invitation
from the time the Invitation
the web pages day of to Bid was first
to Bid was first advertised up advertising/posting of the advertised/ posted
to the deadline for the Invitation to Bid (day 1 of up to the deadline
submission and receipt of period) and the deadline for for the submission
bids the submission of bids (last and receipt of bids?
day of period).
September 2, 2009:
their respective bids, the concerned
BAC shall make the Bidding
Documents for the contract to be
bid available for the following
period:
a) For the procurement of goods

and infrastructure projects, from
the time the Invitation to Bid is
first advertised/posted until the
deadline for the submission of
bids.
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the Answer
the Bidding Documents at the request the BAC Secretariat for the Bidding
website of the procuring advance information on the Documents at the:
first day of any posting of
Bidding Documents. c. PhilGEPS
website from the time that
website starting
the Invitation to Bid was 3. On the first day of posting on the first day
advertised up to the deadline access the PhilGEPS website, of
for the submission and the website of the procuring advertisement
receipt of bids entity concerned, if available.
d. website of the
Implementing Rules and Regulations Print the page where the procuring entity
(IRR) of RA 9184, as amended on notice was posted (to form concerned, if
September 2, 2009: part of the audit evidences). available,
Section 17.5 The procuring entity starting on the
shall also post the Bidding 4. Access the websites at first day of
Documents at its website and at random from the first day of advertisement
the PhilGEPS website from the time posting up to the deadline for
that the Invitation to Bid is the submission and receipt of
advertised. Prospective Bidders bids to verify the postings.
may download the Bidding
Documents from any of the said
websites; Provided that, bidders
shall pay the fee for the Bidding
Documents upon submission of
their Bids.
3. To verify if all bidders that 5. Compare the records of the Did all the bidders
secured Bidding Documents BAC on issued bidding who submitted bids
paid to the authorized documents (with information pay the correct
on Official Receipt numbers) amount for the
collecting officer of the
for the procurement at hand bidding documents
procuring entity
with copies of Official Receipts to the authorized
Implementing Rules and Regulations (ORs) issued by authorized collecting officer of
(IRR) of RA 9184, as amended on collecting officers for the sale the procuring
September 2, 2009: of bidding documents. entity?
17.4. Bidders may be asked to
pay for the Bidding Documents to 6. After submission of bids, for
recover the cost of its preparation bidders that downloaded
and development. The BAC shall bidding documents, compare
issue the Bidding Documents upon the OR numbers indicated in
payment of the corresponding cost the records of the BAC
thereof to the collecting/ disbursing Secretariat with copies of the
officer of the procuring entity ORs or Report of Collection of
concerned. authorized collecting officers.
17.5. Prospective bidders may
download the Bidding Documents
from any of the said websites;
Provided that, bidders shall pay the
fee for the Bidding Documents upon
appropriate audit
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the Answer
resulting contract; auditee in regard to instances
of non-compliance.
the contract;
c. etc. NOTE:
Also refer to the
this Audit Guide.
invited in writing.

appropriate audit
recommendations.

of non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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For the procurement of infrastructure projects with an
Approved Budget for the Contract of at least One Million Pesos (P 1 Million)
The pre-bid conference is the initial forum where the Procuring Entitys representatives
and the prospective bidders discuss the different aspects of the procurement at hand.
A pre-bid conference must be held for contracts with ABCs of at least One Million Pesos (P
1 Million). For contracts with ABCs of less than P 1 million, pre-bid conferences may or may not be
held at the discretion of the BAC. The BAC may also decide to hold a pre-bid conference upon the
written request of a prospective bidder.
1. To verify if the BAC conducted a Pre-Bid Conference for a contract with ABC of at least
P1 million;
2. To verify if the BAC conducted the Pre-Bid Conference within the required time;
3. To verify if during the Pre-Bid Conference the participants, led by the BAC, performed
the required tasks.

2. Minutes of the pre-bid conference approved by the BAC;
3. Letters to the participants of the Pre-Bid Conference with evidence of receipt by the
intended receipt and the date of such receipt;
5. Invitations to the Observers with evidence of receipt,

the Answer
1. To verify if the BAC conducted 1. If the ABC is at least P1 Did the BAC hold a
a Pre-Bid Conference for a million, obtain certified Pre-Bid Conference
contract with ABC of at least P1 copies of the Invitation to for a contract with
Bid and Minutes of the ABC of at least P1
million
Pre-Bid Conference. million?
September 2, 2009:
22.1. For contracts to be bid with an
approved budget of One Million Pesos
(P1,000,000.00) or more, the BAC shall
convene at least one (1) pre-bid
conference to clarify and/or explain any
of the requirements, terms, conditions,
and specifications stipulated in the
Bidding Documents.
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the Answer
2. To verify if the Pre-Bid 2. Based on the deadline Did the BAC hold
Conference was held at least for the submission and the Pre-Bid
twelve (12) calendar days before receipt of bids Conference at
the deadline for the submission indicated in the least twelve
and receipt of bids Invitation to Bid, calendar days
determine the 12th day before the deadline
Implementing Rules and Regulations before such deadline. for the submission
(IRR) of RA 9184, as amended on and receipt of bids
September 2, 2009: 3. Compare the date
22.2 The pre-bid conference shall be
determined in 2. above
held at least twelve (12) calendar days
with the date of
before the deadline for the submission
and receipt of bids. If the procuring holding the Pre-Bid
entity determines that, by reason of the Conference indicated
method, nature, or complexity of the in the certified copy of
contract to be bid or when international the Minutes of Pre-Bid
participation will be more advantageous Conference .
to the GOP,a longer period for the
preparation of bids is necessary, the
pre-bid conference shall be held at least
thirty (30) calendar days before the
deadline for the submission and receipt
of bids.
3. To verify if during the 4. From the Minutes of Did the BAC

Conference the BAC performed Pre-Bid Conference look present, discuss,
the following tasks and attained for information on the and answer queries
presentation/discussion, on the following:
the related objectives:
issues/questions raised by
a. Presented the eligibility prospective bidders, and a. eligibility
requirements as well as the clarifications made requirements?
technical and financial thereon relative to the
components of the contract to following: b. technical
be bid, the evaluation a. eligibility requirements, component of
procedures, evaluation b. technical component of the contract to
criteria, and possible causes of the contract to be bid, be bid?
failure of the bidding; c. financial component of
the contract to be bid, c. financial
d. bid evaluation criteria, component of
b. Discussed the requirements in
e. bid evaluation the contract to
the ITB, replied to the bidders procedures, be bid?
queries about the f. post-qualification
requirements, specifications criteria, d. bid evaluation
and other conditions of the g. post-qualification criteria?
project, the procedures on the procedures,
bid evaluation of all bidders h. possible causes of e. bid evaluation
and post-qualification failure of the bidding, procedures?
i. requirements in the
evaluation of the lowest
Instructions to Bidders, f. post-
calculated bidder. Emphasized
j. specifications, qualification
the warranty requirement of k. other conditions of the criteria?
the project and the different project,
offenses and penalties l. warranty requirement g. post-
provided for in IRR of RA 9184 of the project, qualification
m. different offenses and procedures?
Implementing Rules and Regulations penalties provided for
(IRR) of RA 9184, as amended on in IRR of RA 9184 h. possible causes
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Prepared by:
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the Answer
September 2, 2009: of failure of the
bidding?
22.3 The pre-bid conference shall
discuss, among other things, the i. requirements in
eligibility requirements and the the Instructions
technical and financial components of to Bidders?
the contract to be bid. However, at the
option of the Procuring Entity, only j. specifications?
those who have purchased the Bidding
Documents shall be allowed to k. other conditions
participate in the pre-bid conference of the project?
and raise or submit written queries or
clarifications. [amendment per Annex A l. warranty
of GPPB Resolution No. 06-2009 dated requirement of
30 September 2009] the project?
Generic Procurement Manual,
Volume 2, Manual of Procedures for m. different
the Procurement of Infrastructure offenses and
Projects issued by the GPPB: penalties
The manner by which the pre-bid provided for in
conference is conducted depends on IRR of RA
the discretion of the BAC. However, 9184?
several events need to take place in the
conference, namely:
c. The presentation by the BAC of the
eligibility requirements as well as the
technical and financial components of
the contract to be bid, the evaluation
criteria, and possible causes of failure
of the bidding.
d. The BAC chairperson shall also
discuss the requirements in the ITB,
the replies to the bidders queries
about the requirements,
specifications and other conditions of
the project, the bid evaluation of all
bidders and post-qualification
evaluation of the lowest calculated
bidder. Emphasis should also be
given to the warranty requirement of
the project and the different offenses
and penalties provided for in IRR-A of
R.A. 9184.
4. To verify if the BAC 5. Count the number of Did the BAC

Secretariat recorded the days after the date of the Secretariat make
proceedings of the Pre-Bid Pre-Bid Conference up to available the
the date of approval of Minutes of the Pre-
Conference and made the
the Minutes. Bid Conference not
Minutes available to all
later than three (3)
participants not later than three calendar days after
(3) calendar days after the pre- the pre-bid
bid conference conference?
6. Count the number of
Implementing Rules and Regulations days after the date of the
(IRR) of RA 9184, as amended on Pre-Bid Conference up to
September 2, 2009: the date of receipt of the
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22.4 The minutes of the pre-bid Minutes by its participants
conference shall be recorded and made as indicated in the
available to all participants not later receiving portion of the
than three (3) calendar days after the letter.
pre-bid conference.
5. To verify if the BAC invited 7. From the Minutes of Did the BAC
Observers: the BAC meeting on the choose the
a. representing the COA, the duly selection of the Observer Observers
recognized private group in a from the pool, check for considering:
sector or discipline relevant to the information on the BACs
procurement at hand, and a non- evaluation in regard to: a. one
government organization (NGO) the selection of the representing
from the procuring entitys Pool of organization from the COA?
Observers; which the Observer
will be invited; b. One
b. that have:
knowledge, representing
experience or the duly
expertise in recognized
procurement or in the private group in
be bid;
subject matter of the a sector or
b.2. no actual or potential conflict contract to be bid; discipline
of interest in the contract to be no actual or potential relevant to the
bid; and conflict of interest in procurement at
b.3. conformed with other relevant the contract to be hand?
criteria determined by the BAC; bid; and
c. at least 3 calendar days prior conformed with other c. One
to the start of the activity relevant criteria representing a
determined by the non-
Implementing Rules and Regulations BAC. government
(IRR) of RA 9184, as amended on organization?
September 2, 2009:
d. With
Section 13. Observers knowledge,
13.1. To enhance the transparency of the experience or
process, the BAC shall, in all stages of the expertise in
procurement process, invite, in addition to procurement or
the representative of the COA, at least in the subject
two (2) observers, who shall not have the matter of the
right to vote, to sit in its proceedings contract to be
where: bid?
a) At least one (1) shall come from a duly
recognized private group in a sector or e. With no actual
discipline relevant to the procurement at or potential
hand, for example: conflict of
i) For infrastructure projects, national interest in the
associations of constructors duly contract to be
recognized by the Construction bid?
Industry Authority of the Philippines
(CIAP), such as, but not limited to f. Conformed with
the following: other relevant
(1) Philippine Constructors criteria
Association, Inc.; determined by
(2) National Constructors Association the BAC?
of the Philippines, Inc.; and
(3) Philippine Institute of Civil 8. From certified copies of Did the BAC invite
Engineers (PICE). the invitations to the the Observers at
ii) Observers with evidence least 3 days before
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iii) and of receipt, compare the the date of the
b) The other observer shall come from a date of receipt with the 3- pre-bid
non-government organization (NGO). day minimum conference?
requirement.
13.2. The observers shall come from an
organization duly registered with the
Securities and Exchange Commission
(SEC) or the Cooperative Development
following criteria:
a) Knowledge, experience or expertise in
procurement or in the subject matter of
the contract to be bid;
b) Absence of actual or potential conflict
of interest in the contract to be bid; and
c) Any other relevant criteria that may be
determined by the BAC.

proceedings, provided that they have
been duly invited in writing.
6. To verify if the Procuring 9. Based on the BACs Did the Procuring

Entity considered the comments/ Minutes on the Pre-Bid Entity consider the
observations of the Observers Conference and the report comments/
of the Observers check observations of the
whether a deliberation Observers?
was made on the
comments /observations
September 2, 2009:
of the observers.
a) To prepare the report either jointly or
separately indicating their observations
made on the procurement activities
conducted by the BAC for submission
to the Head of the Procuring Entity,
copy furnished the BAC Chairman. The
report shall assess the extent of the
BACs compliance with the provisions
of this IRR and areas of improvement
in the BACs proceedings;
b) To submit their report to the procuring
entity and furnish a copy to the GPPB
and Office of the
Ombudsman/Resident Ombudsman. If
no report is submitted by the
observer, then it is understood
that the bidding activity
conducted by the BAC followed
the correct procedure; and
c) To immediately inhibit and notify in
writing the procuring entity concerned
of any actual or potential interest in
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the Answer
the contract to be bid.

upon their request, subject to signing
of a confidentiality agreement: (a)
qualification summary report; (d)
APP and related PPMP; and (e)
opened proposals.

contract;
c. etc.
OFFENSES AND
PENALTIES portion
September 2, 2009:
date of the procurement stage/activity.
The absence of observers will not
invited in writing.

recommendations
recommendations.
Also determine if
non-compliance.
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the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion

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Commission on Audit
VII. SUPPLEMENTAL / BID BULLETINS
FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
clarifying or modifying any provision of the Bidding Documents at least seven (7) calendar days
before the deadline for the submission and receipt of bids. Any modification to the Bidding
Documents shall be identified as an amendment.
A. AUDIT OBJECTIVE:

3. Copies of Requests for Clarification submitted by bidders with evidence of receipt by the
BAC Secretariat;
5. Printout of the procuring entitys web page evidencing posting of the Supplemental/Bid
Bulletin.

the Answer
Supplemental / Bid Bulletins the Pre-Bid Conference Supplemental/Bid
in regard to statements made and check for statements Bulletins in regard to
that could modify the statements made at
at the pre-bid conference that
terms of the Bidding the pre-bid
could modify the terms of the
Documents. conference that could
Bidding Documents modify the terms of
2. Obtain a copy of the the Bidding
Implementing Rules and Regulations related Supplemental / Documents to all
(IRR) of RA 9184, as amended on Bid Bulletin and check for bidders that properly
September 2, 2009: the signature of the BAC secured Bidding
22.4. Any Chairman. Documents?
statement made at the pre-bid
conference shall not modify the terms 3. From certified copies of
of the Bidding Documents, unless the letters to bidders who
such statement is specifically purchased the Bidding Did the BAC Chairman
identified in writing as an amendment Documents, look for sign the
thereto and issued as a evidences of their receipt Supplemental / Bid
Supplemental/ Bid Bulletin. of the Supplemental/Bid Bulletin?
Bulletins.
22.5.1. The BAC shall respond to
the said request by issuing a
made available to all those who have
properly secured the Bidding
calendar days before the deadline for
the submission and receipt of bids.
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a. requests for Requests for Clarification Clarification
clarification(s) on any and check (date of receipt submitted at least ten
stamped on the letters) (10) calendar days
part of the Bidding
whether these were before the deadline
Documents or for an submitted at least ten (10) set for the submission
interpretation were in calendar days before the and receipt of bids?
writing and submitted to deadline set for the
the BAC of the procuring submission and receipt of
entity at least ten (10) bids.
calendar days before the
deadline set for the
bids;
b. the Supplemental/ Bid 4. Obtain duly certified Did the BAC Chairman
Bulletin was duly signed copies of Supplemental/Bid sign the
by the BAC Chairman; Bulletins and check for the Supplemental / Bid
signature of the BAC Bulletin?
c. the Supplemental/ Bid Chairman.
Bulletin was issued at
least seven (7) calendar
days before the deadline
receipt of bid. 5. From the records of the Did the BAC issue
BAC (copies of Supplemental/ Bid
Implementing Rules and Regulations Supplemental/Bid Bulletins Bulletins at
(IRR) of RA 9184, as amended on with evidence of the date of least seven (7)
September 2, 2009: issuance) count the number calendar days before
22.5.1 Requests for clarification(s) of days from said issuance the deadline for the
on any part of the Bidding and the deadline for the submission and
Documents or for an interpretation submission and receipt of receipt of bid?
must be in writing and submitted bids; compare with the 7-
to the BAC of the procuring entity day requirement.
bids.
3. To verify if:
6. From the records of the Did the BAC issue
a. Supplemental/Bid Bulletins BAC (copies of Supplemental/ Bid
Supplemental/Bid Bulletins Bulletins at
initiated by the procuring
with evidence of the date of least seven (7)
entity for purposes of
issuance) count the number calendar days before
clarifying or modifying any of days from said issuance the deadline for the
provision of the Bidding and the deadline for the submission and
Documents were issued at submission and receipt of receipt of bid?
least seven (7) calendar bids; compare with the 7-
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the Answer
days before the deadline day requirement.
receipt of bids;
b. Modifications to the
Bidding Documents were
identified as amendments; 7. Go through the contents Did the BAC identify
of Supplemental/Bid modifications to the
c. the Supplemental/ Bid Bulletins and check if Bidding Documents
Bulletin was duly signed by amendments were as amendments?
the BAC Chairman identified as such.

September 2, 2009: 8. Go through the Did the BAC Chairman
22.5.1. issuing a Supplemental/Bid Bulletins sign the
Supplemental/Bid Bulletin, duly and check for the signature Supplemental / Bid
signed by the BAC Chairman of the BAC Chairman. Bulletin?
22.5.2 Supplemental/Bid Bulletins

may be issued upon the procuring
entitys initiative for purposes of
clarifying or modifying any
provision of the Bidding Documents
amendment.
4. To verify if the BAC posted 9. In advance of the posting, Did the BAC post
Supplemental/Bid Bulletins it request the BAC Secretariat Supplemental/Bid
issued on the PhilGEPS and for print-outs (printed on the Bulletins:
day of the posting) of
the website of the procuring
Supplemental/ Bid Bulletins a. on the PhilGEPS?
entity concerned, if available
as posted on the PhilGEPS
and at their website. and
10. Obtain the printouts procuring entity
September 2, 2009:
requested as evidence of the concerned?
22.5.3 Any Supplemental/ Bid
posting.
Bulletin issued by the BAC shall
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the Answer
the IRR.
5. To verify if the BAC 11. From the BAC records on Did the BAC inform
informed and allowed to submission of bids, identify and allow to modify
modify or withdraw their bids the bidders who have or withdraw their bids
submitted bids before the in accordance with
those bidders who have
issuance of Section 26.1 of the
submitted bids before the Supplemental/Bid Bulletins. IRR the bidders who
issuance of the have submitted bids
Supplemental/Bid Bulletin 12. Go through copies of before the issuance of
letters sent by the BAC to Supplemental/Bid
Implementing Rules and Regulations these bidders and check if Bulletins?
(IRR) of RA 9184, as amended on they were informed and
September 2, 2009: allowed to modify or
withdraw their bids in
22.5.3 However, bidders who accordance with Section
have submitted bids before the 26.1 of the IRR.
issuance of the Supplemental/
Bid Bulletin must be informed
and allowed to modify or
withdraw their bids in
the IRR.

appropriate audit
the contract;
c. etc.
OFFENSES AND
this Audit Guide.
invited in writing.
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appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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VIII. SUBMISSION, RECEIPT, OPENING
& PRELIMINARY EXAMINATION OF BIDS
Bids shall be submitted simultaneously in two (2) separate sealed envelopes and received
by the procuring entity on or before the deadline specified in the Invitation to Bid. Opening of Bids
shall be at the time, date and place specified in the Invitation to Bid.
1. To verify if the prescribed conditions and procedures in the submission and receipt of
bids were followed;
2. To verify if the bids were submitted in the prescribed manner, specified forms and
contained all the required information;
3. To verify if the prescribed conditions and procedures in the opening and preliminary
examination of bids were followed.

1. Minutes of the Bid Opening approved by the BAC;
2. Letters from bidders submitting their bids;
3. Bid documents submitted by the bidders:
a. First Envelope and its contents,
b. Second Envelope and its contents,
c. Modified bids, if applicable
4. Copy of portions of the BAC Secretariats Receiving logbook containing information on
receipt of bids;
6. Accomplished Checklist for the First Envelopes;
7. Accomplished Checklist for the Second Envelopes;
9. BAC Resolution on the results of the opening of and the preliminary evaluation of bids;
11. Invitations to the Observers with evidence of receipt;

the Answer
SUBMISSION OF BIDS FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
1. To verify if the BAC validated if 1. Go through the Did the BAC validate
the bidders submitted their bids: Minutes of the Bid if the bidders submit
a. through their duly authorized Opening and look for their bids through
information on the BACs their duly authorized
representative,
validation if the representative?
b. in two (2) separate sealed bid signatory to the
envelopes submitted document submitting the
simultaneously bid is the bidders
authorized
Implementing Rules and Regulations (IRR) of representative as
RA 9184, as amended on September 2, 2009: indicated in the Sworn
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the Answer
25.1. Bidders shall submit their bids Statement.
through their duly authorized
representative using the forms specified in
the Bidding Documents in two (2) separate
sealed bid envelopes, and which shall be
submitted simultaneously. The first shall
contain the technical component of the bid,
including the eligibility requirements under 2. Go through the Did the BAC validate
Section 23.1 of this IRR, and the second Minutes of the Bid if the bidders
shall contain the financial component of the Opening and look for submitted their bids
bid information on the BACs using the forms
validation if each bidder specified in the
adopted the forms Bidding Documents?
specified in the Bidding
Documents.
3. Go through the Did the BAC validate

records of the BAC if the bidders submit
pertaining to the their bids in two (2)
submission of bids of separate sealed bid
each bidder and check if envelopes submitted
the two (2) envelopes simultaneously?
were submitted
simultaneously.
4. Go through the
Minutes of the Bid
Opening and look for
information pertaining to
opening of two (2)
sealed envelops of each
bidder.
2. To verify if the 5. Go through the Did the BAC validate
BAC validated that in modifying a records of the BAC that the bidders
bid: pertaining to the concerned submitted
submission of bids of their bid
each bidder and check if modifications before
a. it was done before the deadline
the submission of the deadline for the
for the submission and receipt of modifications were done submission and
bids, before the deadline for receipt?
the submission and
b. the original bid was not retrieved receipt.
but another bid equally sealed,
properly identified, was submitted 6. Go through the Did the BAC validate
and linked to the original bid and Minutes of the Bid if the bidders
marked as a modification, Opening and look for concerned did not
information on the BACs retrieve the original
thereof, and stamped received
activities validating if: bid but merely
by the BAC a. bidders did not submitted another
retrieve the original bid equally sealed,
Implementing Rules and Regulations (IRR) of bid but merely properly identified,
RA 9184, as amended on September 2, 2009: submitted another and linked to the
26.1. A bidder may modify its bid, provided equally sealed and original bid and
that this is done before the deadline for the properly identified as marked as a
submission and receipt of bids. Where a modification and modification,
bidder modifies its bid, it shall not be stamped received thereof, and
allowed to retrieve its original bid, but shall by the BAC; and stamped received
only be allowed to send another bid equally b. linked to the original by the BAC?
sealed, properly identified, linked to its
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the Answer
original bid and marked as a modification, bid (not withdrawn).
thereof, and stamped received by the
BAC. Bid modifications received after the
applicable deadline shall not be considered
and shall be returned to the bidder
unopened.
RECEIPT OF BIDS FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS

1. To verify if the BAC received bids: 1. Check the receiving Did the BAC receive
a. on the date and time, logbook of the BAC for bids on the date and
b. place information on the date, time specified in the
time, and place of Invitation to Bid?
specified in the Invitation to Bid
receipt of bids and
compare these with Did the BAC receive
Implementing Rules and Regulations (IRR) of
those in the Invitation bids at the place
RA 9184, as amended on September 2, 2009:
to Bid. specified in the
25.4. Bids shall be received by the BAC on Invitation to Bid?
the date, time, and place specified in the
Invitation to Bid.
Did the BAC not
25.5. Bids, including the eligibility
accept bids after the
requirements under Section 23.1 of this
deadline for
IRR, submitted after the deadline shall not
submission of bids?
be accepted by the BAC.
2. To verify if the BAC observed the 2. Count the number of Did the BAC observe
maximum of 50 (or 65) calendar days from the last day the maximum of 50-
days from the last day of posting of of posting of the or 65 calendar days
Invitation to Bid (per from the last day of
the Invitation to Bid up to the
printout of the web posting of the
deadline for submission and receipt
page with the date Invitation to Bid up to
of bids indicated thereon) up to the deadline for
the deadline for submission and
Implementing Rules and Regulations (IRR) of submission and receipt receipt of bids?
RA 9184, as amended on September 2, 2009: of bids (per Bidding
25.4. Bids shall be received by the BAC on Documents) and
the date, time, and place specified in the compare with the 50- or
Invitation to Bid/Request for Expression of 65-calendar-day
Interest. The following periods from the maximum period.
last day of posting of the Invitation to
Bid/Request for Expression of Interest up
to the submission and receipt of bids shall
be observed:
a)...
b) For infrastructure projects, the following
maximum periods:
Approved Budget Period

for the Contract
(in Philippine
currency)
Fifty (50) million 50 calendar days
and below
Above fifty (50) 65 calendar days
million
c)
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the Answer
OPENING & PRELIMINARY EXAMINATION OF BIDS FOR THE
PROCUREMENT OF INFRASTRUCTURE PROJECTS
1. To verify if the BAC observed 1. From the Office Was there a quorum
quorum. Order creating the BAC, of the BAC?
determine the number
Implementing Rules and Regulations (IRR) of of BAC members and
RA 9184, as amended on September 2, 2009: identify the Chairman or
12.3 Quorum Vice-Chairman.
A majority of the total BAC composition as
designated by the Head of the Procuring Entity 2. From the Minutes of
shall constitute a quorum for the transaction Opening of Bids, check
of business, provided that the presence of the for the presence of the
Chairman or Vice-Chairman shall be required. Chairman or Vice-
Chairman and if
majority of the BAC
members or
representatives/alternat
es attended the
proceedings.
2. To verify if the BAC opened the 3. Compare the date Did the BAC open the
bids immediately after the deadline and time of the opening bids immediately after
for the submission and receipt of of bids indicated in the the deadline for the
Minutes of the Opening submission and
bids and at the:
of Bids with the receipt of bids?
a. date, deadline for submission
b. time, and and receipt of bids Did the BAC open the
c. place stated in the Bidding bids on the date
specified in the Invitation to Bid Documents. specified in the
Invitation to Bid?
Implementing Rules and Regulations (IRR) of 4. Compare the date,
RA 9184, as amended on September 2, 2009: time and place of the Did the BAC open the
29. Bid Opening opening of bids bids on the time
The BAC shall open the bids immediately indicated in the Minutes specified in the
after the deadline for the submission and of the Opening of Bids Invitation to Bid?
receipt of bids. [GPPB Resolution No. 13- with those specified in
2009, dated 16 December 2009] The time, the Invitation to Bid. Did the BAC open the
date, and place of the opening of bids shall bids at the place
be specified in the Bidding Documents. The specified in the
bidders or their duly authorized Invitation to Bid?
representatives may attend the opening of
bids. The BAC shall adopt a procedure for
ensuring the integrity, security, and
confidentiality of all submitted bids. The
minutes of the bid opening shall be made
available to the public upon written request
and payment of a specified fee to recover
cost of materials.
3. To verify if the BAC/BAC 5. From the Minutes of Did the BAC:

Secretariat read out and recorded Bid Opening, check for
during bid opening letters of information on the a. read out and
BACs reading out and record during bid
withdrawal and returned to the
recording of withdrawn opening letters of
bidder the envelope containing the
bids during the bid withdrawal of bids?
corresponding withdrawn bid opening; checking of
unopened, either to the bidders the date of submission b. if the withdrawal of
representative if he is present or by of the withdrawal letter; bid was made before
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the Answer
registered mail and returning the the deadline for
withdrawn bid submission and
Philippine Bidding Documents for the unopened. receipt of bids, return
Procurement of Infrastructure Projects, 3rd the bids unopened to
edition (October 2009) approved per GPPB Also check for evidence representatives of the
Resolution No. 05-2009 dated 30 September of the return of the bidders concerned
2009: withdrawn bids from present during the
acknowledged bid opening?
23. Modification and Withdrawal of Bids registered mails.
7.2. c. if the withdrawal of
7.3. A Bidder may, through a bid was made before
letter of withdrawal, withdraw its bid the deadline for
after it has been submitted, for valid and submission and
justifiable reason; provided that the letter receipt of bids, return
of withdrawal is received by the withdrawn bids
Procuring Entity prior to the deadline unopened by
prescribed for submission and receipt of registered mail?
bids.
7.4. Bids requested to be 6. From the Minutes of Did the BAC forfeit
withdrawn in accordance with ITB Clause the Bid Opening, check the bid security and
23.1, shall be returned unopened to the for information on recommend the
Bidders. A Bidder may also express its withdrawals of bids imposition of
intention not to participate in the bidding made after the deadline sanctions on bidders
through a letter which should reach and for submission and who withdrew their
be stamped by the BAC before the receipt of bids up to the bids during the
deadline for submission and receipt of expiration of the period interval between the
bids. A Bidder that withdraws its bid of bid validity specified deadline for
shall not be permitted to submit another by the bidder in the submission of bids
bid, directly or indirectly, for the same financial bid form; and and the expiration of
contract. for information on the period of bid
7.5. No bid may be modified forfeiture of bid security validity specified by
after the deadline for submission of bids. and imposition of the Bidder on the
No bid may be withdrawn in the interval sanctions on these Financial Bid Form?
between the deadline for submission of bidder.
bids and the expiration of the period of
bid validity specified by the Bidder on the
Financial Bid Form. Withdrawal of a bid
during this interval shall result in the
forfeiture of the Bidders bid security,
pursuant to ITB Clause 18.5, and the
imposition of administrative, civil, and
criminal sanctions as prescribed by RA
9184 and its IRR.
24. Opening and Preliminary Examination

of Bids
24.3 Letters of withdrawal shall be read
out and recorded during bid opening, and
the envelope containing the corresponding
withdrawn bid shall be returned to the
Bidder unopened. If the withdrawing
Bidders representative is in attendance,
the original bid and all copies thereof shall
be returned to the representative during
the bid opening. If the representative is not
in attendance, the bid shall be returned
unopened by registered mail. The Bidder
may withdraw its bid prior to the deadline
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the Answer
for the submission and receipt of bids,
provided that the corresponding Letter of
Withdrawal contains a valid authorization
requesting for such withdrawal, subject to
appropriate sanctions.
4. To verify if the BAC opened the 7. From the Attendance Did the BAC open the
first bid envelopes of the bidders in Record/Minutes of the first bid envelopes of
public Opening of Bids check if the bidders in public?
the participants
Implementing Rules and Regulations (IRR) of included bidders and
RA 9184, as amended on September 2, 2009: observers.
30.1. The BAC shall open the first bid
envelopes of prospective bidders in public
to determine each bidders compliance with
the documents required to be submitted for
eligibility and for the technical
requirements, as prescribed in this IRR. 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
nondiscretionary pass/fail criterion, as
stated in the Instructions to Bidders. 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 said first bid envelope as passed
5. To verify if the BAC determined 8. Compare the Did the BAC adopt a
compliance of each bidder with the Checklist for the first Checklist for the first
documents required to be submitted envelope adopted by envelope in
the BAC with the list of accordance with the
in the first envelope by checking the
documents in the first list of documents in
submitted documents of each bidder
envelope per Bidding the first envelope per
against a checklist of required Documents. Bidding Documents?
documents to ascertain if they are all
present, using a nondiscretionary 9. Determine if the Did the BAC
pass/fail criterion, as stated in the BACs entries in the determine each
Instructions to Bidders Checklist are complete. bidders compliance
with the documents
Implementing Rules and Regulations (IRR) of required to be
RA 9184, as amended on September 2, 2009: submitted in the first
30.1. The BAC shall open the first bid envelope:
envelopes of prospective bidders in public to
determine each bidders compliance with the a. Registration
documents required to be submitted for certificate from
eligibility and for the technical requirements, SEC, Department
as prescribed in this IRR. For this purpose, of Trade and
the BAC shall check the submitted documents Industry (DTI) for
of each bidder against a checklist of required sole
documents to ascertain if they are all present, proprietorship, or
using a nondiscretionary pass/fail criterion, CDA for
cooperatives, or
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as stated in the Instructions to Bidders. If a any proof of such
bidder submits the required document, it shall registration as
be rated passed for that particular stated in the
requirement. In this regard, bids that fail to Bidding
include any requirement or are incomplete or Documents?
patently insufficient shall be considered as
failed. Otherwise, the BAC shall rate the b. In a Joint
said first bid envelope as passed. Venture, each
partners
25.2. The first envelope shall contain the Registration
following technical information/ documents, certificate from
at the least: SEC, Department
a) of Trade and
b) For the procurement of infrastructure Industry (DTI) for
projects: sole
i) Eligibility requirements under Section proprietorship, or
23.1 of this IRR; CDA for
ii) The bid security in the prescribed form, cooperatives, or
amount and validity period; any proof of such
iii) Project Requirements, which shall registration as
include the following: stated in the
(1) Organizational chart for the contract to Bidding
be bid; Documents?
(2) List of contractors personnel (viz,
Project Manager, Project Engineers, c. Mayors permit
Materials Engineers, and Foremen), to be issued by the city
assigned to the contract to be bid, with or municipality
their complete qualification and where the
experience data; principal place of
(3) List of contractors equipment units, business of the
which are owned, leased, and/or under prospective bidder
purchase agreements, supported by is located?
certification of availability of equipment
from the equipment lessor/vendor for the d. In a Joint Venture,
duration of the project; each partners
iv) Sworn statement by the prospective Mayors permit
bidder or its duly authorized representative issued by the city
in the form prescribed by the GPPB as to or municipality
the following: where the
(1) It is not blacklisted or barred from principal place of
bidding by the GOP or any of its business of the
agencies, offices, corporations, or LGUs, prospective bidder
including foreign government/foreign or is located?
international financing institution whose
blacklisting rules have been recognized e. Statement of the
by the GPPB; prospective bidder
(2) Each of the documents submitted in of all its ongoing
satisfaction of the bidding requirements and completed
is an authentic copy of the original, government and
complete, and all statements and private contracts,
information provided therein are true and including contracts
correct; awarded but not
(3) It is authorizing the Head of the yet started, if any,
Procuring Entity or his duly authorized whether similar or
representative/s to verify all the not similar in
documents submitted; nature and
(4) The signatory is the duly authorized complexity to the
representative of the prospective bidder, contract to be bid,
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and granted full power and authority to within the relevant
do, execute and perform any and all acts period as provided
necessary and/or to represent the in the Bidding
prospective bidder in the bidding, with Documents?
the duly notarized Secretarys Certificate
attesting to such fact, if the prospective e.1. In a Joint
bidder is a corporation, partnership, Venture, any
cooperative, or joint venture; partners
(5) It complies with the disclosure provision statement of all its
under Section 47 of the Act in relation to ongoing and
other provisions of R.A. 3019; completed
(6) It complies with the responsibilities of a government and
prospective or eligible bidder provided in private contracts,
the PBDs; and including contracts
(7) It complies with existing labor laws and awarded but not
standards, in the case of procurement of yet started, if any
services.
f. The bidders
23.1. For purposes of determining the audited financial
eligibility of bidders using the criteria stated in statements,
Section 23.5 of this IRR, only the following showing, among
documents shall be required by the BAC, others, the
using the forms prescribed in the Bidding prospective
Documents,: bidders total and
current assets and
liabilities, stamped
Legal Documents received by the
i) Registration certificate from SEC, BIR or its duly
Department of Trade and Industry (DTI) accredited and
for sole proprietorship, or CDA for authorized
cooperatives, or any proof of such institutions, for the
registration as stated in the Bidding preceding calendar
Documents. year which should
ii) Mayors permit issued by the city or not be earlier than
municipality where the principal place of two (2) years from
business of the prospective bidder is the date of bid
located. submission?
Technical Documents
iii) Statement of the prospective bidder of f.1. In a Joint
all its ongoing and completed Venture, any
government and private contracts, partners audited
including contracts awarded but not yet financial statement
started, if any, whether similar or not
similar in nature and complexity to the
contract to be bid, within the relevant g. The bidders
period as provided in the Bidding computation for its
Documents. The statement shall include Net Financial
all information required in the PBDs Contracting
prescribed by the GPPB. Capacity (NFCC)
iv) In the case of procurement of or a commitment
infrastructure projects, a valid Philippine from a Universal
Contractors Accreditation Board (PCAB) or Commercial
license and registration for the Bank to extend a
type and cost of the contract to be bid credit line in favor
of the prospective
Financial Documents bidder if awarded
v) The prospective bidders audited the contract to be
financial statements, showing, among bid (CLC)?
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others, the prospective bidders total and
current assets and liabilities, stamped g.1. In a Joint
received by the BIR or its duly Venture, any
accredited and authorized institutions, for partners NFCC or
the preceding calendar year which should CLC
not be earlier than two (2) years from
the date of bid submission. h. Valid joint venture
vi) The prospective bidders computation Agreement (JVA),
for its Net Financial Contracting Capacity in case the joint
(NFCC) or a commitment from a venture is already
Universal or Commercial Bank to extend in existence.
a credit line in favor of the prospective
bidder if awarded the contract to be bid In the absence
(CLC). of a JVA, duly
notarized
b) Class B Document
statements from
Valid joint venture Agreement (JVA), in all the potential
case the joint venture is already in joint venture
existence. In the absence of a JVA, duly partners stating
notarized statements from all the potential that they will enter
joint venture partners stating that they will into and abide by
enter into and abide by the provisions of the provisions of
the JVA in the instance that the bid is the JVA in the
successful shall be included in the bid. instance that the
Failure to enter into a joint venture in the bid is successful?
event of a contract award shall be ground
for the forfeiture of the bid security. Each i. The bid security in
partner of the joint venture shall submit the the prescribed:
legal eligibility documents. The submission a. form?
of technical and financial eligibility b. amount?
documents by any of the joint venture c. validity
partners constitutes compliance. period?
27.1. All bids shall be accompanied by a bid j. Project

security, payable to the procuring entity Requirements,
concerned as a guarantee that the which shall
successful bidder shall, within ten (10) include:
calendar days or less, as indicated in the a. Organizational
Instructions to Bidders, from receipt of the chart for the
notice of award, enter into contract with contract to be
the procuring entity and furnish the bid?
performance security required in Section 39 b. List of
of this IRR, except when Section 37.1 of contractors
this IRR allows a longer period. Failure to personnel
enclose the required bid security in the (viz, Project
form and amount prescribed herein shall Manager,
automatically disqualify the bid concerned. Project
Engineers,
27.2 The bid security shall be in an Materials
amount equal to a percentage of the Engineers,
ABC in accordance with the following and
schedule [as amended by Annex A of Foremen), to
GPPB Resolution No. 06-2009 dated be assigned
September 30, 2009]: to the
contract to be
bid, with their
complete
qualification
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and
Amount of experience
Bid Security data?
Form of Bid Security (Equal to c. List of
Percentage contractors
of the ABC) equipment
a) Cash or cashiers/ managers
units, which
check issued by a Universal or Two
Commercial Bank. percent are owned,
b) Bank draft/ guarantee or (2%) leased, and/or
irrevocable letter of credit issued under
by a Universal or Commercial purchase
Bank: Provided, however, that it agreements,
shall be confirmed or authentic- supported by
ated by a Universal or certification of
Commercial Bank, if issued by a
availability of
foreign bank.
c) Surety bond callable upon equipment
demand issued by a surety or Five from the
insurance company duly certified percent equipment
by Insurance Commission as (5%) lessor/vendor
authorized to issue such security. for the
d) Any combination of the Proportion- duration of
foregoing. ate to share the project?
of form
with respect
k. Sworn statement
to total
amount of by the prospective
security bidder or its duly
authorized
For biddings conducted by LGUs, the representative in
prospective bidder may also submit bid the form
securities in the form of cashiers/managers prescribed by the
check, bank draft/guarantee, or irrevocable GPPB as to the
letter of credit from other banks certified by following:
the BSP as authorized to issue such financial (1) It is not
instrument. blacklisted or
barred from
27.3. The bid security shall be denominated bidding by the
in Philippine Pesos and posted in favor of the GOP or any of
procuring entity. its agencies,
offices,
Section 47. Disclosure of Relations corporations, or
All bids shall be accompanied by a sworn LGUs, including
affidavit of the bidder that it is not related to foreign
the Head of the Procuring Entity, members of government/
the BAC, the TWG, and the BAC Secretariat, foreign or
the head of the PMO or the end-user unit, and international
the project consultants, by consanguinity or financing
affinity up to the third civil degree. Failure to institution
comply with the aforementioned provision whose
shall be a ground for the automatic blacklisting rules
disqualification of the bid in consonance with have been
Section 30 of this IRR. For this reason, relation recognized by
to the aforementioned persons within the third the GPPB?
civil degree of consanguinity or affinity shall (2) Each of the
automatically disqualify the bidder from documents
participating in the procurement of contracts submitted in
of the procuring entity. On the part of the satisfaction of
bidder, this provision shall apply to the the bidding
following persons: requirements is
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a) If the bidder is an individual or a sole an authentic
proprietorship, to the bidder himself; copy of the
b) If the bidder is a partnership, to all its original,
officers and members; complete, and
c) If the bidder is a corporation, to all its all statements
officers, directors, and controlling and information
stockholders; and provided therein
d) If the bidder is a joint venture, the are true and
provisions of items (a), (b), or (c) of this correct?
Section shall correspondingly apply to each (3) It is
of the members of the said joint venture, authorizing the
as may be appropriate Head of the
Procuring Entity
or his duly
authorized
representative/s
to verify all the
documents
submitted?
(4) 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
Secretarys
Certificate
attesting to such
fact, if the
prospective
bidder is a
corporation,
partnership,
cooperative, or
joint venture?
(5) It complies
with the
disclosure
provision under
Section 47 of
the Act in
relation to other
provisions of
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R.A. 3019?
(6) It complies
with the
responsibilities
of a prospective
or eligible bidder
provided in the
PBDs?
(7) It complies
with existing
labor laws and
standards, in
the case of
procurement of
services?
6. To verify if the BAC opened the 10. From the Checklists Did the BAC open
second envelopes of the bidders of the first envelope only the second
whose first envelopes were rated and Minutes of the Bid envelopes of the
Opening identify the bidders whose first
passed on the same day and
bidders who were rated envelopes were rated
determined compliance with the passed. passed?
requirements using a
Instructions to Bidders 11. From the Minutes of Did the BAC open the
the Bid Opening, check second envelopes on
Implementing Rules and Regulations (IRR) of if the second envelopes the same day when
RA 9184, as amended on September 2, 2009: of the bidders who were the first envelopes
30.2 Immediately after determining rated passed was were opened?
compliance with the requirements in the opened by the BAC on
first envelope, the BAC shall forthwith open the same day when the
the second bid envelope of each remaining first envelopes were
eligible bidder whose first bid envelope was opened.
rated passed. The second envelope of
each complying bidder shall be opened 12. Compare the Was the BACs
within the same day In case one or more Checklist with the list of Checklist in
of the requirements in the second envelope documents in the accordance with the
of a particular bid is missing, incomplete or second envelope per list of documents in
patently insufficient, and/or if the Bidding Documents. the second envelope
submitted total bid price exceeds the ABC, per Bidding
the BAC shall rate the bid concerned as Documents?
failed. Only bids that are determined to
contain all the bid requirements for both
components shall be rated passed and 13. Validate the entries Did the BAC
shall immediately be considered for (pass/fail) in the determine each
evaluation and comparison. Checklist with the bidders compliance
25.3. The second envelope shall contain documents submitted with the financial
the financial information/documents as by the bidders in the information/document
specified in the PBDs. second envelope (for s required to be
presence or absence). submitted in the
Philippine Bidding Documents (PBDs) for second envelope:
the Procurement of Infrastructure
Projects, 3rd Edition, (October 2009) (a) Bidding Forms
approved by the GPPB per GPPB Resolution
No. 06-2009 dated September 30, 2009: a.1 Bid Form?
Documents Comprising the Bid: Financial
Component a.2 Form of
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13.1. Unless otherwise stated in the Bid Contract
Data Sheets, the financial component of Agreement?
the bid shall contain the following:
a. Financial Bid Form in accordance with a.3. Omnibus
the form prescribed in Section IX, Sworn
Bidding Forms; and Statement?
b. Any other document required in the
Bid Data Sheets.
13.2. Unless indicated in the BDS, all bids
that exceed the ABC shall not be accepted.
31.1 The ABC shall be the upper limit or 14. From the Minutes Did the BAC
ceiling for acceptable bid prices. If a bid of Bid Opening, Abstract automatically
price, as evaluated and calculated in of Bids as Read, and disqualify bids higher
accordance with this IRR, is higher than the relevant BAC than the ABC?
ABC, the bidder submitting the same shall Resolutions check if
be automatically disqualified. There shall be bids higher than the
no lower limit or floor on the amount of the ABC were automatically
award. disqualified.
IN CASE A BIDDER DETERMINED AS FAILED FILES A REQUEST FOR RECONSIDERATION

1. To verify if the Bidder determined 1. Count the number of Did the BAC ensure
as failed submitted his request for days FROM the date of that the Bidder
reconsideration within 3 days upon bid opening or date of determined as failed
receipt of the notice by submitted their
written notice or, if present at the
the concerned Bidder requests for
time of bid opening, upon verbal
TO the date of receipt reconsideration within
notification by the BAC Secretariat 3 days upon written
of the letter-request for notice or, if present
Philippine Bidding Documents (PBDs) for reconsideration (duly at the time of bid
the Procurement of Infrastructure stamped received by opening, upon verbal
Projects, 3rd Edition, (October 2009) the BAC Secretariat) notification?
approved by the GPPB per GPPB Resolution and compare with the
No. 06-2009 dated September 30, 2009: 3-day maximum.
24.7. A Bidder determined as failed has
three (3) calendar days upon written notice 2. From the Minutes of Did the BAC evaluate
or, if present at the time of bid opening, upon the deliberation of the if the failure was due
verbal notification within which to file a request for to the fault of the
request for reconsideration with the BAC: reconsideration, look for bidder?
Provided however, that the request for information and finding
reconsideration shall not be granted if it is if the failure was due to
established that the finding of failure is due to the fault of the Bidder, If in the affirmative,
the fault of the Bidder concerned: Provided, and the if the BAC did the BAC decide
further, that the BAC shall decide on the decided not to grant the not to grant the
request for reconsideration within seven (7) request. request?
calendar days from receipt thereof. If a failed
bidder signifies his intent to file a request for 3. From the Minutes of Did the BAC decide
reconsideration, the BAC shall keep the bid the deliberation of the on the request for
envelopes of the said failed Bidder unopened request for reconsideration within
and/or duly sealed until such time that the reconsideration, look for 7 days from receipt
request for reconsideration or protest has information on the thereof?
been resolved. period within which the
BAC decided on the
request for
reconsideration from
the date of receipt of
the request for
reconsideration up to
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the date of decision
(BAC Resolution) on the
decision reached; and
compare with the 7-day
maximum period.
INVOLVEMENT OF BAC OBSERVERS IN THE BID OPENING AND PRELIMINARY EXAMINATION OF

BIDS, INCLUDING EVALUATION AND DECISION ON REQUESTS FOR RECONSIDERATION
1. To verify if the BAC invited 1. From the Minutes of Did the BAC choose
Observers: the BAC meeting on the the Observers
a. representing the COA, the duly selection of the considering:
recognized private group in a sector Observer from the
or discipline relevant to the pool, check for 1. one representing
procurement at hand, and a non- information on the the COA?
government organization (NGO) from BACs evaluation in
the procuring entitys Pool of regard to: 2. One representing
Observers; the selection of the the duly
organization from recognized private
b. that have:
which the Observer group in a sector
will be invited; or discipline
knowledge, relevant to the
subject matter of the contract to be
experience or procurement at
bid;
expertise in hand?
b.2. no actual or potential conflict of procurement or in
interest in the contract to be bid; and the subject matter of 3. One representing
b.3. conformed with other relevant the contract to be a non-government
criteria determined by the BAC; bid; organization?
c. at least 3 calendar days prior to no actual or
the start of the activity potential conflict of 4. With knowledge,
interest in the experience or
Implementing Rules and Regulations contract to be bid; expertise in
(IRR) of RA 9184, as amended on and procurement or in
conformed with the subject matter
September 2, 2009: other relevant of the contract to
Section 13. Observers criteria determined be bid?
13.1. To enhance the transparency of the by the BAC.
process, the BAC shall, in all stages of the 5. With no actual or
procurement process, invite, in addition to the potential conflict
representative of the COA, at least two (2) of interest in the
observers, who shall not have the right to contract to be bid?
vote, to sit in its proceedings where:
a) At least one (1) shall come from a duly 6. Conformed with
recognized private group in a sector or other relevant
discipline relevant to the procurement at hand, criteria determined
for example: by the BAC?
i) For infrastructure projects, national
associations of constructors duly 2. From certified copies Did the BAC invite the
recognized by the Construction Industry of the invitations to the Observers at least 3
Authority of the Philippines (CIAP), such Observers with evidence days before the date
as, but not limited to the following: of receipt, compare the of the bid opening?
(1) Philippine Constructors Association, date of receipt with the
Inc.; 3-day minimum
(2) National Constructors Association of requirement.
the Philippines, Inc.; and
(3) Philippine Institute of Civil Engineers
(PICE).
ii)
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iii) and
b) The other observer shall come from a non-
government organization (NGO).

organization duly registered with the Securities
and Exchange Commission (SEC) or the
Cooperative Development Authority (CDA),
and should meet the following criteria:
procurement or in the subject matter of the
contract to be bid;
b) Absence of actual or potential conflict of
interest in the contract to be bid; and

2. To verify if the Procuring Entity 3. Based on the BACs Did the Procuring
considered the Minutes on the bid Entity consider the
comments/observations of the opening and preliminary comments/
evaluation of bids and observations of the
Observers
the report of the Observers?
Observers check
Implementing Rules and Regulations (IRR) of
whether a deliberation
RA 9184, as amended on September 2, 2009:
was made on the
comments
observers.
conducted by the BAC for submission to the
furnished the BAC Chairman. The report
shall assess the extent of the BACs
compliance with the provisions of this IRR
and areas of improvement in the BACs
proceedings;
entity and furnish a copy to the GPPB and
Office of the Ombudsman/Resident
Ombudsman. If no report is submitted
by the observer, then it is understood
that the bidding activity conducted by
procedure; and
c) To immediately inhibit and notify in writing
the procuring entity concerned of any
actual or potential interest in the contract
to be bid.
13.5. Observers shall be allowed access to
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the following documents upon their
request, subject to signing of a
confidentiality agreement: (a) minutes of
BAC meetings; (b) abstract of Bids;
(c) post-qualification summary report;
(d) APP and related PPMP; and (e)
opened proposals.

1. To verify the effects of instances Analyze the instances of
of non-compliance on the: non-compliance to Appropriate Audit Working Papers
establish the effects and
a. validity of the procurement develop appropriate
activities and outputs including audit recommendations.
the validity of the resulting
contract; Also determine if
appropriate actions
b. validity of any payment to be were taken by the
made on the basis of the contract; auditee in regard to
c. etc. instances of non-
compliance.
recommendations
Implementing Rules and Regulations NOTE:

(IRR) of RA 9184, as amended on Also refer to the
September 2, 2009: OFFENSES AND
PENALTIES
Observers shall be invited at least three (3) portion of this Audit
calendar days before the date of the
Guide.
procurement stage/activity. The absence of
2. To verify the causes of instances Analyze the instances of

of non-compliance and develop non-compliances to Appropriate Audit Working Papers
appropriate audit recommendations establish the cause(s)
Also determine if
appropriate actions
were taken by the
auditee in regard to
instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this Audit
Guide.
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3. To communicate the results of the Prepare the appropriate
audit with the auditees audit/ validation Audit Observation Memorandum (AOM), if
Management document reflecting the applicable
results of the
COA Circular No. 2009-006 dated September audit/validation and
15, 2009 re- Prescribing the Use of the transmit to
Rules and Regulations on Settlement of Management
Accounts
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IX. BID EVALUATION
The purpose of bid evaluation is to determine the Lowest Calculated Bid. This is done by
establishing the correct calculated prices of the bids and ranking in ascending order the total bid
prices as so calculated. The bid with the lowest price is the LCB.
1. To verify if the BAC adopted the required conditions and procedures in the bid
evaluation;
2. To verify if the BAC followed the required timeline in the conduct of bid evaluation.

1. Minutes of Bid Opening;
2. Checklists for technical and financial envelopes;
4. BAC Resolution(s) on the preliminary examination of bids;
5. TWG report on the bid evaluation for determination of the bidder with the LCB, as
reviewed by the BAC;
6. Abstract of Bids as Calculated;
7. Minutes of the BAC meeting on bid evaluation;
8. Resolution of the BAC declaring the LCB;
10. Invitation letters to the Observers with evidence of receipt;

the Answer
1. To verify if the BAC 1. From the Minutes of Bid Did the BAC conduct
conducted detailed Opening, Checklists for detailed evaluation only
evaluation of all bidders technical and financial of bidders who passed
envelopes, Abstract of Bids in the preliminary
whose first envelope
as Read, and BAC examination of bids?
(technical component) and Resolutions identify the
second envelope (financial bidders who were rated
component) were rated passed in all aspects and
passed compare with the names of
the bidders included in the
Implementing Rules and Regulations bid evaluation (from the
(IRR) of RA 9184, as amended on TWG report, as reviewed by
September 2, 2009: the BAC, Minutes of the BAC
30.2. .Only bids that are meeting on bid evaluation,
determined to contain all the bid and Resolution of the BAC
requirements for both components declaring the LCB).
shall be rated passed and shall
immediately be considered for
evaluation and comparison.
2. To verify if the BAC 2. From the TWG report, as Did the BAC evaluate
considered completeness reviewed by the BAC, the completeness of the
and arithmetical Minutes of the BAC meeting financial component of
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corrections of the financial on bid evaluation, and the bids?
component of the bids in Resolution of the BAC
the detailed evaluation declaring the bidder with the
Lowest Calculated Bid (LCB), Did the BAC consider
Implementing Rules and Regulations look for the information on non-responsive and,
(IRR) of RA 9184, as amended on the evaluation of thus, automatically
September 2, 2009: completeness of financial disqualified bids not
32.2.1 The BAC shall component of the bids. addressing or providing
immediately conduct a detailed all of the required items
evaluation of all bids using non- in the Bidding
discretionary criteria in considering Documents?
the following:
a. Completeness of the bid
Unless the Instruction to Bidders
non-responsive and,
specifically allow partial bids, bids
thus, automatically
not addressing or providing all of
disqualified bids that did
the required items in the Bidding
not indicate the price
Documents including, where
for a required item?
applicable, bill of quantities, shall
be considered non-responsive
and, thus, automatically
disqualified. In this regard, where 3. From the TWG report, as Did the BAC evaluate
a required item is provided, but no reviewed by the BAC, the arithmetical
price is indicated, the same shall Minutes of the BAC meeting accuracy of financial
be considered as non-responsive, on bid evaluation, and components of bids:
but specifying a 0 (zero) for the Resolution of the BAC
said item would mean that it is declaring the bidder with the d. computational
being offered for free to the Lowest Calculated Bid (LCB), errors?
Government; and look for the information on
the evaluation of e. omissions?
b. Arithmetical corrections
arithmetical accuracy of
Consider computational errors financial component of the f. other bid
and omissions to enable proper bids. modification, if
comparison of all eligible bids. allowed in the
It may also consider bid Bidding Documents?
modifications if expressly
allowed in the Bidding
Documents [AS AMENDED BY
GPPB RESOLUTION NO. 06-
2009 DATED SEPT 30, 2009].
Any adjustment shall be
calculated in monetary terms
to determine the calculated
prices.
32.2.2. 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
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evaluation and comparison.
32.2.3. 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 bill of
quantities, the latter shall prevail.
32.2.4. Bids shall then be ranked

in the ascending order of their total
calculated bid prices, as evaluated
and corrected for computational
errors, and other bid modifications,
to identify the Lowest Calculated
Bid. Total calculated bid prices, as
computational errors, and other bid
modifications, which exceed the ABC
shall be disqualified.
Requirements of the Bidding

Documents for the specific
procurement.
3. To verify if the BAC 4. Analyze the TWG report Did the BAC disqualify
disqualified bidders whose with supporting documents bidders whose bids as
bids as calculated were and duly reviewed by the calculated were higher
BAC, Minutes of the BAC than the ABC?
higher than the ABC
meeting on bid evaluation,
Implementing Rules and Regulations Abstract of Bids as
(IRR) of RA 9184, as amended on Calculated, and Resolution
September 2, 2009: of the BAC declaring the
bidder with the Lowest
31.1 The ABC shall be the Calculated Bid (LCB), and
upper limit or ceiling for check if the BAC disqualified
acceptable bid prices. If a bid bidders whose bids are
price, as evaluated and calculated higher than the ABC.
in accordance with this IRR, is
higher than the ABC, the bidder
submitting the same shall be
automatically disqualified. There
shall be no lower limit or floor on
the amount of the award.
4. To verify if the BAC 5. Check for completeness Did the BAC prepare the
prepared the Abstract of Bids of the information contained Abstract of Bids as
as Calculated with the in the Abstract of Bids as calculated with the
Calculated and if this was following information:
required information
signed by the members of
Implementing Rules and Regulations the BAC. a. Name of the
(IRR) of RA 9184, as amended on contract?
September 2, 2009:
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b. Location?
Section 32.3 After all bids have c. Time of bid opening?

been received, opened, examined,
evaluated, and ranked, the BAC shall d. Date of bid opening?
prepare the corresponding Abstract of
Bids. .The Abstract of Bids shall e. Place of bid opening?
contain the following:
f. Names of bidders and
a. Name of the contract and its their corresponding
location, if applicable; calculated bid prices
b. Time, date and place of bid
opening; and g. Calculated bid prices
c. Names of bidders and their arranged from
corresponding calculated bid lowest to highest?
prices arranged from lowest to
highest, the amount of bid h. Amount of bid
security and the name of the security?
issuing entity.
i. Name of the issuing
entity?
j. Names and signatures

of the Chairman and
members of the
BAC?
5. To verify if the BAC 6. Analyze the TWG report, Did the BAC declare
declared rank 1 in the as reviewed by the BAC, rank 1 in the Abstract of
Abstract of Bids as Calculated Minutes of the BAC meeting Bids as Calculated as
on bid evaluation, Abstract the bidder with the
as the bidder with the Lowest
of Bids as Calculated, and Lowest Calculated Bid
Calculated Bid (LCB) Resolution of the BAC (LCB)?
Implementing Rules and Regulations declaring the bidder with the
(IRR) of RA 9184, as amended on Lowest Calculated Bid (LCB),
September 2, 2009: and check if rank 1 in the
32.2.4. Bids shall then be ranked Abstract was declared as the
in the ascending order of their bidder with the Lowest
total calculated bid prices, as Calculated Bid (LCB).
bid modifications, to identify the
Lowest Calculated Bid. Total
calculated bid prices, as evaluated
and corrected for computational
errors, and other bid
modifications, which exceed the
ABC shall be disqualified.
6. To verify if the BAC notified 7. Obtain a copy of the Did the BAC notify the
the bidder with the LCB notice issued by the BAC to bidder with the LCB?
the bidder with the LCB and
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Implementing Rules and Regulations check for receipt by the
(IRR) of RA 9184, as amended on bidder.
September 2, 2009:
34.2. Within three (3) calendar
days from receipt by the bidder of
the notice from the BAC that the
bidder has the Lowest Calculated
Bid or Highest Rated Bid, the
bidder shall submit the following
BAC:
7. To verify if the BAC 8. From the Invitation to Bid Did the BAC complete
completed the evaluation of and the Minutes of Bid the evaluation process
bids within seven (7) Evaluation determine the within seven (7)
number of days from the calendar days from the
calendar days from the
deadline for receipt of deadline for receipt of
deadline for receipt of
proposals and the proposal?
proposals (5 calendar days completion of the bid (5 days for projects
for infrastructure projects evaluation. costing P50 million and
costing P50 million and below)?
below)

September 2, 2009:
32.4 The entire evaluation process
shall be completed within seven (7)
calendar days from the deadline for
receipt of proposals. However, for
infrastructure projects costing Fifty
Million Pesos (P50,000,000) and
below, the entire evaluation process
shall be completed in not more than
five (5) calendar days from the
deadline for receipt of proposal.
Observers: BAC meeting on the Observers considering:
a. representing the COA, the selection of the Observer
duly recognized private group from the pool, check for a. one representing the
in a sector or discipline information on the BACs COA?
relevant to the procurement evaluation in regard to:
at hand, and a non- the selection of the b. One representing the
government organization organization from which duly recognized
(NGO) from the procuring the Observer will be private group in a
entitys Pool of Observers; invited; sector or discipline
knowledge, experience or relevant to the
b. that have:
expertise in procurement procurement at
or in the subject matter hand?
the subject matter of the of the contract to be bid;
no actual or potential c. One representing a
contract to be bid;
conflict of interest in the non-government
b.2. no actual or potential organization?
conflict of interest in the contract to be bid; and
contract to be bid; and conformed with other
relevant criteria d. With knowledge,
b.3. conformed with other experience or
relevant criteria determined by determined by the BAC.
expertise in
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the BAC; procurement or in
c. at least 3 calendar days the subject matter of
prior to the start of the the contract to be
bid?
activity
e. With no actual or
Implementing Rules and Regulations potential conflict of
(IRR) of RA 9184, as amended on interest in the
September 2, 2009: contract to be bid?
Section 13. Observers f. Conformed with

13.1. To enhance the transparency of other relevant
the process, the BAC shall, in all criteria determined
stages of the procurement process, by the BAC?
invite, in addition to the
representative of the COA, at least
two (2) observers, who shall not have
the right to vote, to sit in its
proceedings where: 10. From certified copies of Did the BAC invite the
a) At least one (1) shall come from a the invitations to the observers at least 3
duly recognized private group in a Observers with evidence of days from the date of
sector or discipline relevant to the receipt, compare the date of the bid evaluation?
procurement at hand, for example: receipt with the 3-day
i) For infrastructure projects, minimum requirement
national associations of
constructors duly recognized by
the Construction Industry
(CIAP), such as, but not limited
to the following:
(1) Philippine Constructors
Association, Inc.;
(2) National Constructors
Association of the
(3) Philippine Institute of Civil
Engineers (PICE).
ii)
iii) and
from a non-government organization
(NGO). 13.2. The observers shall
come from an organization duly
registered with the Securities and
Exchange Commission (SEC) or the
Cooperative Development Authority
(CDA), and should meet the following
criteria:
be bid;
to be bid; and
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o 13.3. Observers shall be invited at
invited in writing.
9. To verify if the Procuring 10. Based on the BACs Did the Procuring Entity
Entity considered the Minutes on the bid consider the comments/
comments/observations of evaluation and the report of observations of the
the Observers check Observers?
the Observers
whether a deliberation was
observers.
September 2, 2009:
proceedings;
Ombudsman/Resident
procedure; and
be bid.
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proposals.

appropriate audit
the contract;
c. etc.
OFFENSES AND
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
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NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
Accounts
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X. POST-QUALIFICATION
FOR THE FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
The Lowest Calculated Bid (LCB) shall undergo post-qualification in order to determine
whether the bidder concerned complies with and is responsive to all the requirements and
conditions as specified in the Bidding Documents.
1. To verify if the BAC adopted the required conditions and procedures in the conduct of
post-qualification;
2. To verify if the BAC followed the required timeline in the conduct of post-qualification.

1. BAC Resolution declaring the bidder with the LCB;
2. Copy of the BAC Secretariats Receiving logbook indicating information on receipt of the:
a) Tax clearance, b) Latest income and business tax returns, c) Certificate of PhilGEPS
Registration; and d) Other appropriate licenses and permits required by law and stated in
the Bidding Documents, submitted by the bidder with the LCB;
3. Copy each of the documents submitted by the bidder with the LCB;
4. Constructors Performance Evaluation System (CPES) reports obtained by the BAC from the
Construction Industry Authority of the Philippines (CIAP);
5. Documents evidencing the BACs validation of the veracity of the documents submitted
and the information thereon;
6. TWG report on the post-qualification conducted, including supporting documents (e.g.
inspection reports), as reviewed by the BAC; evidencing:
a. validation of the authenticity of the documents submitted and information
thereon;
b. validation of compliance of the goods offered with the requirements specified in
the Bidding Documents, duly supported with: inspection reports on the goods
offered and test results;
c. validation of the sufficiency of the bid security as to type, amount, form and
wording, validity period;
d. validation of compliance with the financial requirements of the LCB;
e. conduct of analysis and concluding on the post-qualification or disqualification of
the bidder, as the case may be;
7. BAC Resolutions on post-qualification/post-disqualification, declaration of LCRB, and
recommendation to the HOPE;
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1. To verify whether the bidder 1. From the records of the Did the bidder with
whose bid was declared as the BAC, count the number of the LCB:
Lowest Calculated Bid (LCB)/ days from the date when
the bidder with the LCB a. submit within 3
Single Calculated Bid (SCB)
received the notice and the calendar days
submitted the following date it submitted the: a) Tax from receipt of
documents within 3 calendar clearance, b) Latest income the notice as
days from the bidders receipt and business tax returns, c) LCB?
of the notice: Certificate of PhilGEPS
a) Tax clearance; Registration; and d) Other b. Tax Clearance?
b) Latest income and business appropriate licenses and
tax returns; permits required by law and c. Latest income
c) Certificate of PhilGEPS stated in the Bidding and business tax
Documents. returns?
Registration; and
d) Other appropriate licenses
Compare this with the d. Certificate of
and permits required by law required maximum 3-day PhilGEPS
and stated in the Bidding period. Registration?
Documents
e. Other
Implementing Rules and Regulations appropriate
(IRR) of RA 9184, as amended on licenses and
September 2, 2009: permits required
34.2. Within three (3) calendar days by law and
from receipt by the bidder of the stated in the
notice from the BAC that the bidder Bidding
has the Lowest Calculated Bid or Documents?
Highest Rated Bid, the bidder shall
submit the following documentary
a) Tax clearance;
returns;
Registration; and
2. To verify if the BAC: 2. If based on the validation Did the BAC forfeit
2.1. determined the veracity of conducted in 1. above, the the bid security and
the documents submitted submissions were found to disqualify the
be incomplete and/or not on bidder for award
and
time, obtain a copy of the because of failure
2.2. forfeited the bid security
BAC Resolution disqualifying to submit the
and disqualified the bidder the bidder and forfeiting its required documents
for award for reason that; bid security. on time?
a. the bidder failed to
submit the required 3. Obtain from the BAC Did the BAC forfeit
documents on time, Secretariat documents the bid security and
and/or evidencing the BACs disqualify the
b. there was a finding validation of the veracity of bidder for award
against the veracity of the the documents submitted because of a
and the information thereon finding against the
documents/ information
and check the results of veracity of the
such validation. documents/
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information?
Implementing Rules and Regulations If the BAC had a finding
(IRR) of RA 9184, as amended on against the veracity of the
September 2, 2009: documents/ information
34.2.Within three (3) calendar days thereon, obtain a copy of
from receipt by the bidder of the the BAC Resolution
notice from the BAC that the bidder disqualifying the bidder and
has the Lowest Calculated Bid or forfeiting its bid security.
Highest Rated Bid, the bidder shall
submit the following documentary
a) Tax clearance;
returns;
c) Certificate of PhilGEPS Registration;
and
permits required by law and stated
in the Bidding Documents.

security and disqualify the bidder for
award.
3. To verify if the BAC 4. Match the name of the Did the BAC subject
subjected the bidder with the bidder with the LCB as the bidder with the
Lowest Calculated Bid (LCB) to indicated in the BAC Lowest Calculated
Resolution declaring the LCB Bid (LCB) to post-
post-qualification
with the name of the bidder qualification?
Implementing Rules and Regulations indicated in the TWGs Post-
(IRR) of RA 9184, as amended on Qualification Report, as
September 2, 2009: reviewed by the BAC and in
the Minutes of the BAC
34.1 The Lowest Calculated Bid shall meetings.
undergo post-qualification in order to
determine whether the bidder
concerned complies with and is
responsive to all the requirements
and conditions as specified in the
Bidding Documents.
4. To verify if the BAC verified, 5. From the TWG report with Did the BAC
validated, and ascertained that supporting documents and validate the
the bidder with the LCB is: duly reviewed by the BAC, authenticity of the
and the Minutes of BAC Registration
meetings, look for documents
a. a duly licensed Filipino information evidencing submitted by the
citizen/sole proprietor, or validation of the authenticity bidder?
b. a Partnerships duly of the:
organized under the laws of
a) DTI Registration
the Philippines and of which
Certificate, duly supported
at least seventy five percent
with:
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(75%) of the interest the DTI-certified copy
belongs to citizens of the of the Registration
Philippines, or Certificate and
DTI certificate that the
c. a Corporation duly organized
sole proprietor is a
under the laws of the Filipino citizen (based
Philippines, and of which at on the application for
least seventy five percent registration filed by the
(75%) of the outstanding bidder with the DTI),
capital stock belongs to if the bidder is a sole
citizens of the Philippines, or proprietorship;
d. Cooperatives duly organized
b. SEC registration and of
under the laws of the
the 75% Filipino
Philippines, and of which at
ownership, duly
least seventy five percent supported with:
(75%) belongs to citizens of the SEC-certified
the Philippines, or copy of the
e. Joint Venture - that Filipino Registration
ownership or interest of the Certificate,
joint venture concerned shall if the bidder is a
be at least seventy five partnership;
percent (75%)
the 60% Filipino
ownership, duly
supported with:
September 2, 2009:
SEC-certified copy of
the Registration
Certificate and
SEC-certified copy of
the Articles of
Incorporation
Bid, using non-discretionary criteria,
if the bidder is a
as stated in the Bidding Documents.
corporation.
d. CDA registration and of
the 75% Filipino
ownership, duly
supported with:
CDA-certified copy of
the Registration
Certificate and
CDA certificate that
at least sixty percent
(60%) belongs to
citizens of the
Philippines
if the bidder is a
23.5.2. For the procurement of cooperative
infrastructure projects:
23.5.2.1. The following e. Joint Venture individual
persons/entities shall be allowed to partners:
participate in the bidding DTI, SEC, or CDA
for infrastructure projects: registrations and
a) Duly licensed Filipino citizens/sole of the 75% Filipino
proprietorships; ownership
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b) Partnerships duly organized under duly supported with the
the laws of the Philippines and of DTI-, SEC-, or CDA-
which at least seventy-five percent certified Certificate, as
(75%) of the interest belongs to the case may be and
citizens of the Philippines; DTI-, SEC-, or CDA-
c) Corporations duly organized under certified documents
the laws of the Philippines, and of evidencing ownership.
which at least seventy-five percent 6. From the TWG report, as Did the BAC
(75%) of the outstanding capital reviewed by the BAC, and validate Filipino
stock belongs to citizens of the the Minutes of BAC ownership of the
Philippines; meetings, look for bidder?
d) Cooperatives duly organized under information evidencing
the laws of the Philippines, and of validation of Filipino
which at least seventy percent ownership of the bidders
(75%) belongs to citizens of the firm.
Philippines; or
e) Persons/entities forming themselves
into a joint venture, i.e., a group of
two (2) or more persons/entities
that intend to be jointly and
severally responsible or liable for a
particular contract: Provided,
however, That, in accordance with
Letter of Instructions No. 630 (LOI
630), Filipino ownership or interest
of the joint venture concerned shall
be at least seventy-five percent
(75%): Provided, further, That joint
ventures 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: Provided,
finally, That 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 joint venture as
specified in their JVA.
5. To verify if the BAC verified, 7. From the TWG report, as Did the BAC verify,
validated, and ascertained that reviewed by the BAC, and validate, and
the Mayors Permit submitted the Minutes of BAC ascertain that the
meetings, look for Mayors Permit
by the bidder with the LCB was
information evidencing submitted by the
issued by the city or validation of authenticity of bidder is authentic?
municipality where the the Mayors Permit and
principal place of business of whether it was issued by the
the prospective bidder is city or municipality where Did the BAC verify,
located the principal place of the validate, and
business of the bidder is ascertain that the
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Implementing Rules and Regulations located, duly supported Mayors Permit
(IRR) of RA 9184, as amended on with: submitted by the
September 2, 2009: The LGU-certified copy bidder was issued
34.3. The post-qualification shall of the Mayors permit, by the city or
verify, validate, and ascertain all and municipality where
statements made and documents DTI-, SEC-, or CDA- the principal place
submitted by the bidder with the certified Registration of business of the
Lowest Calculated Bid/Highest Rated Certificate showing the bidder is located?
Bid, using non-discretionary criteria, bidders principal place
as stated in the Bidding Documents. of business

23.1. For purposes of determining
the eligibility of bidders using the
criteria stated in Section 23.5 of
this IRR, only the following
documents shall be required by the
BAC, using the forms prescribed in
the Bidding Documents,:
Legal Documents
i) ---
located.
6. To verify if the BAC 8. From the TWG report, as Did the BAC verify,
validated if the bidder with the reviewed by the BAC, and validate, and
LCB has a valid license and the Minutes of BAC ascertain that the
meetings, check for PCAB license and
registration issued by the
information showing the registration
Philippine Contractors
BACs validation of the: submitted by the
Accreditation Board (PCAB) to
authenticity of the PCAB bidder is authentic?
engage or act as a contractor license and registration,
for the type of contract to be bid for the type of contract
to be bid.
(IRR) of RA 9184, as amended on Did the BAC
September 2, 2009: validate if the
23.5.2.3. In accordance with R.A. bidder with the LCB
4566, entitled An Act Creating the has a valid license
Philippine Licensing Board for and registration
Contractors, Prescribing its Powers, issued by the
Duties and Functions, Providing Philippine
Funds Therefor, and for Other Contractors
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Purposes, the persons/entities Accreditation Board
enumerated in Section 23.5.1.1 of (PCAB) to engage
this IRR may participate in public or act as a
bidding if he has been issued a contractor for the
license by the PCAB to engage or act type of contract to
as a contractor. be bid?
23.1. Technical Documents

iii)
iv) In the case of procurement of
infrastructure projects, a valid
Philippine Contractors Accreditation
Board (PCAB) license and
registration for the type and cost of
the contract to be bid.
7. To verify if the BAC 9. From the TWG report, as Did the BAC
validated if the bidder with the reviewed by the BAC, and validate if the
LCB is not blacklisted the Minutes of BAC bidder with the LCB
meetings, check for was not
information showing the blacklisted?
BACs validation if the bidder
with the LCB is not
September 2, 2009:
blacklisted.
Bid, using non-discretionary criteria, as
These criteria shall consider, but shall

agreements submitted by the bidder,
and the fact that it is not included
in any blacklist as provided in
Section 25.2 of this IRR. For this
purpose, the GPPB shall
maintain a consolidated file of
all blacklisted suppliers,
validated the bidders reviewed by the BAC, the validate the
compliance with the no Minutes of BAC meetings/ relationship of the
deliberations and BAC bidder with the:
Resolution, check for
embodied in Section 47 of the information showing the a. HOPE?
Revised IRR of RA No. 9184, BACs validation that:
i.e., that the bidder is not a. the individual bidder in b. members of the
related by consanguinity or an individual or a sole BAC?
affinity up to the 3rd civil proprietorship, is not
degree to the: related to the persons c. members of the
a. HOPE, mentioned in Sec. 47, TWG?
Amended IRR of RA
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b. members of the BAC, 9184; d. members of the
c. members of the TWG, b. all the officers and BAC Secretariat?
d. members of the BAC members of the bidder
partnership are not e. head of the
Secretariat,
related to the persons Project
e. head of the Project mentioned in Sec. 47, Management
Management Office (PMO), Amended IRR of RA Office (PMO)?
f. head of the end-user unit, 9184;
g. project consultants c. all the officers, directors, f. head of the end-
and controlling user unit?
Section 47. Disclosure of Relations stockholders of the
All bids shall be accompanied by a bidder corporation are g. project
sworn affidavit of the bidder that it is not related to the consultants?
not related to the persons mentioned in
Head of the Procuring Entity, members Sec. 47, Amended IRR of
of the BAC, the TWG, and the BAC RA 9184.
Secretariat, the
head of the PMO or the end-user unit,
and the project consultants, by
consanguinity or affinity up to the third
civil degree. Failure to comply with the
aforementioned provision shall be a 11. From the TWG report, as Did the BAC
ground for the automatic reviewed by the BAC, the automatically
disqualification of the bid in consonance Minutes of BAC disqualify the
with Section 30 of this IRR. For this meetings/deliberations and bidder found to be
reason, relation to the BAC Resolution, check for related within the
aforementioned persons within the information showing the 3rd civil degree of
third civil degree of consanguinity BACs decision/action in case consanguinity or
or affinity shall automatically of violation with the no affinity with the
disqualify the bidder from relationship provision. persons listed in
participating Section 47 of the
in the procurement of contracts of Revised IRR of RA
the procuring entity. On the part of 9184?
the bidder, this
persons:
himself;
its officers, directors, and controlling
stockholders; and
provisions of items (a), (b), or (c) of
this Section shall correspondingly
apply to each of the members of the
said joint venture, as may be
appropriate
9. To verify if the BAC validated the 12. From the TWG report Did the BAC
bidders stated competence and duly reviewed by the BAC, validate if the
experience and the Minutes of BAC bidder with the LCB
meetings, check for has completed:
Implementing Rules and Regulations information showing the
(IRR) of RA 9184, as amended on BACs validation of the a. within a period
September 2, 2009: completion by the bidder of ten (10) years
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34.3. The post-qualification shall within a period of ten (10) from the date of
verify, validate, and ascertain all years from the date of submission and
statements made and documents submission and receipt of receipt of bids?
submitted by the bidder with the bids, of at least one (1)
Lowest Calculated Bid/Highest Rated contract that is similar to the b. of at least one
Bid, using non-discretionary criteria, as contract to be bid, and (1) contract that is
stated in the Bidding Documents. whose value, adjusted to similar to the
These criteria shall consider, but shall current prices using the NSO contract to be bid?
not be limited to, the following: consumer price indices is at
least fifty percent (50%) of c. and whose
b) Technical Requirements. To the ABC to be bid. value, adjusted to
determine compliance of the goods, current prices using
infrastructure projects, or consulting the NSO consumer
services offered with the price indices is at
requirements specified in the Bidding OR least fifty percent
Documents, including, where From the TWG report, as (50%) of the ABC
applicable: reviewed by the BAC, and to be bid?
the Minutes of BAC
i) Verification and validation of the meetings, check for
bidders stated competence and information showing the
experience, and the competence BACs validation that for
and experience of the bidders key contractors under Small A Did the BAC
personnel to be assigned to the and Small B categories validate if for
project, for the procurement of without similar experience bidder under Small
infrastructure projects and on the contract to be bid, A and Small B
consulting services; the cost of such contract is categories without
not more than fifty percent similar experience
23.5.2.5. The prospective bidder (50%) of the Allowable on the contract to
must have an experience of having Range of Contract Cost be bid the ABC is
completed, within a period of ten (ARCC) of their registration not more than 50%
(10) years from the date of based on the guidelines as of ARCC?
submission and receipt of bids, at prescribed by the PCAB.
least one (1) contract that is similar
to the contract to be bid, and whose
value, adjusted to current prices
using the NSO consumer price
indices, must be at least fifty percent
(50%) of the ABC to be bid:
Provided, however, That contractors
under Small A and Small B
categories without similar experience
on the contract to be bid may be
allowed to bid if the cost of such
contract is not more than fifty
percent (50%) of the Allowable
Range of Contract Cost (ARCC) of
their registration based on the
guidelines as prescribed by the
PCAB.
For Foreign-funded Procurement,

the GOP and the foreign
government/ foreign or international
financing institution may agree on
another track record requirement.
Moreover, a contract shall be

considered similar to the contract
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to be bid if it has the same major
categories of work.
10. To verify if the BAC validated 13. From the TWG report Did the BAC verify,
the stated competence and with supporting documents validate, and
experience of the bidders key and duly reviewed by the ascertain that the
personnel to be assigned to the BAC, and the Minutes of BAC documents
project meetings, check for submitted by the
information showing the bidder as evidence
Implementing Rules and BACs validation of the of the competence
Regulations (IRR) of RA 9184, as authenticity of the and experience of
amended on September 2, 2009: documents submitted as its key personnel to
34.3. The post-qualification shall evidence of the competence be assigned to the
verify, validate, and ascertain all and experience of the project license
statements made and documents bidders key personnel to be were authentic?
submitted by the bidder with the assigned to the project; and
Lowest Calculated Bid/Highest Rated validation of said Did the BAC
Bid, using non-discretionary criteria, as competence and experience validate the stated
stated in the Bidding Documents. with the requirements of the competence and
These criteria shall consider, but shall Bidding Documents. experience of the
not be limited to, the following: bidders key
personnel to be
b) Technical Requirements. To assigned to the
determine compliance of the goods, project against the
infrastructure projects, or consulting requirements of the
services offered with the Bidding
requirements specified in the Bidding Documents?
Documents, including, where
applicable:
i) Verification and validation of the

bidders stated competence and
experience, and the competence
and experience of the bidders key
personnel to be assigned to the
project, for the procurement of
infrastructure projects and
consulting services.
11. To verify if the BAC validated 14. From the TWG report, as Did the BAC
the availability, commitment, reviewed by the BAC, and validate the
capacities and operating the Minutes of BAC availability,
conditions of equipment units to meetings, duly supported commitment,
be owned/leased/under purchase with analysis of schedules of capacities and
by the bidder for use in the equipment utilization, operating
contract under bidding inspection reports and test conditions of
results, check for equipment units to
Implementing Rules and information showing the be owned/leased/
Regulations (IRR) of RA 9184, as BACs validation of the under purchase by
amended on September 2, 2009: availability, commitment, the bidder for use
capacities and operating in the contract
b) Technical Requirements. To conditions of equipment under bidding?
determine compliance of the goods, units to be owned/leased/
infrastructure projects, or consulting under purchase by the
services offered with the bidder for use in the
requirements specified in the Bidding contract under bidding.
Documents, including, where
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applicable:
i)
ii) Verification of availability and
commitment, and/or inspection
and testing for the required
capacities and operating
conditions, of equipment units to
be owned/leased/under purchase
by the bidder for use in the
contract under bidding,
as well as checking the

performance of the bidder in its
ongoing government and private
contracts (if any of these on-going
contracts shows a reported
negative slippage of at least
fifteen percent (15%), or
substandard quality of work as per
contract plans and specifications,
or unsatisfactory performance of
the contractors obligations as per
contract terms and conditions, at
the time of inspection, and if the
BAC verifies any of these
deficiencies to be due to the
contractors fault or negligence,
the agency shall disqualify the
contractor from the award), for
the procurement of infrastructure
projects;
iii)
iv)
12. To verify if the BAC checked 15. From the TWG report Did the BAC
the performance of the bidder in duly reviewed by the BAC, validate the
its on-going government and and the Minutes of BAC bidders
private contracts for: meetings, duly supported performance in its
with inspection reports and ongoing
a. reported negative slippage of at test results, photographs, government and
least fifteen percent (15%), or interview documents with private contracts
owners/project personnel of for:
b. substandard quality of work as previous/current projects of
per contract plans and the bidder, check for a. reported
specifications, or information showing the negative slippage
BACs validation of the of at least fifteen
c. unsatisfactory performance of performance of the bidder in percent (15%)? or
the contractors obligations as per its ongoing government and
contract terms and conditions, at private contracts for: b. substandard
the time of inspection, quality of work as
a. reported negative per contract plans
and verified that the deficiencies
slippage of at least fifteen and specifications?
were due to the contractors fault
percent (15%), or or
or negligence
b. substandard quality of c. unsatisfactory
work as per contract plans performance of the
and specifications, or contractors
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September 2, 2009: obligations as per
34.3. c. unsatisfactory contract?
performance of the
b) Technical Requirements. To contractors obligations as and
determine compliance of the goods, per contract
infrastructure projects, or consulting d. verified that the
services offered with the and verified that the deficiencies were
requirements specified in the Bidding deficiencies were due to the due to the
Documents, including, where contractors fault or contractors fault or
applicable: negligence. negligence?
i)
16. From the TWG report Did the BAC
ii) as well as checking the duly reviewed by the BAC, disqualify the
performance of the bidder in its the Minutes of BAC bidder found to be
ongoing government and private meetings/ deliberations and at fault or
contracts (if any of these on-going BAC Resolution, check for negligent?
contracts shows a reported information showing the
negative slippage of at least BACs evaluation and
fifteen percent (15%), or decision to disqualify the
substandard quality of work as per bidder found to be at fault
contract plans and specifications, or negligent.
or unsatisfactory performance of
the contractors obligations as per
contract terms and conditions, at
the time of inspection, and if the
BAC verifies any of these
deficiencies to be due to the
contractors fault or negligence,
the agency shall disqualify the
contractor from the award),
for the procurement of
infrastructure projects;
iii)
iv)
validated that the bidders reviewed by the BAC, the validate that the
Constructors Performance Minutes of BAC meetings/ bidders ratings in
Evaluation Summary and/or deliberations and BAC the CPES and/or
Resolution, with copies of certificates of
certificate of completion and
the CPES) reports obtained completion and
owners acceptance of the by the BAC from the owners acceptance
contract was at least Construction Industry were at least
satisfactory Authority of the Philippines satisfactory?
(CIAP), check for
Implementing Rules and information showing the
Regulations (IRR) of RA 9184, as BACs validation of the
amended on September 2, 2009: bidders ratings in the CPES
23.5.2.4. The Constructors and/or certificates of
Performance Evaluation System [AS completions and owners
AMENDED BY GPPB RESOLUTION acceptance that the ratings
NO. 11-2009 DATED 30 NOVEMBER were at least satisfactory.
2009] (CPES) rating and/or
certificate of completion and owners
acceptance of the contract must be
satisfactory.
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verified, validated, and duly reviewed by the BAC, validate, and
ascertained authenticity of the the Minutes of BAC ascertain the
meetings/ deliberations and authenticity of the
bid security and its sufficiency
BAC Resolution, check for bid security
as to: information showing the submitted by the
a. type, BACs validation of the bidder?
b. amount, authenticity of the bid
c. form and wording, and security and its sufficiency
d. validity period. as to type, amount, form
and wording, and validity Did the BAC
Implementing Rules and period. ascertain the
Regulations (IRR) of RA 9184, as sufficiency of the
amended on September 2, 2009: bid security as to:
verify, validate, and ascertain all a. type?
submitted by the bidder with the b. amount?
discretionary criteria, as stated in c. form and
the Bidding Documents. These wording?
criteria shall consider, but shall not
be limited to, the following: d. validity period?
a. Legal Requirements
i)
ii)
iii)
sufficiency of the bid security as to
type, amount, form and wording,
and validity period.
15. To verify if the BAC verified, 19. From the TWG report Did the BAC verify,
validated, and ascertained if duly reviewed by the BAC validate, and
the Net Financial Contracting with supporting documents ascertain the
from the appropriate authenticity of the
Capacity (NFCC) is at least
authorities (e.g. certified documents
equal to the ABC or the Credit
true copy of the financial (financial
Line Certificate (CLC) in favor statements with the Income statements, etc.)
of the prospective bidder if Tax Return, bank that issued submitted by the
awarded the contract is at least the CLC), the Minutes of bidder to support
10% of the ABC BAC meetings/deliberations its computation of
and BAC Resolution, check NFCC?
Implementing Rules and Regulations for information showing the
(IRR) of RA 9184, as amended on BACs: Did the BAC verify,
September 2, 2009: a. validation of the validate, and
34.3. The post-qualification shall authenticity of the CLC or ascertain that the:
verify, validate, and ascertain all the financial statements
statements made and documents used as basis for a. NFCC is at least
submitted by the bidder with the computing the NFCC, equal to the ABC?
Lowest Calculated Bid, using non- b. validation of the accuracy
discretionary criteria, as stated in of the computation for or
the Bidding Documents. These NFCC,
criteria shall consider, but shall not c. validation of the b. CLC is at least
be limited to, the following: Statement of the 10% of the ABC?
a) Legal Requirements . prospective bidder of all
b) Technical Requirements its ongoing and
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c) Financial Requirements completed government
To verify, validate and ascertain and private contracts,
the bid price proposal of the including contracts
bidder and, whenever applicable, awarded but not yet
the required CLC in the amount started, and
specified and over the period d. comparison with the
stipulated in the Bidding requirements.
Documents, or the bidders NFCC
to ensure that the bidder can
sustain the operating cash flow of
the transaction.
23.5.1.4. If the prospective bidder

submits a computation of its NFCC,
the NFCC must be at least equal to
the ABC to be bid, calculated as
follows:

uncompleted portions of the projects
under ongoing contracts, including
awarded contracts yet to be started
coinciding with the contract to be
bid.
Where:
K = 10 for a contract duration of
one year or less, 15 for a contract
duration of more than one year up
to two years, and 20 for a contract
duration of more than two years.
If the prospective bidder submits

a CLC, the CLC must be at least
equal to ten percent (10%) of the
ABC to be bid. If the CLC is issued
by a foreign Universal or
Commercial Bank, it shall be
confirmed or authenticated by a
Universal or Commercial Bank. For
biddings conducted by LGUs, the
certified by the BSP as authorized
to issue such financial instrument.
23.1.
Technical Documents
iii) Statement of the prospective bidder
of all its ongoing and completed
government and private contracts,
including contracts awarded but not
yet started, if any, whether similar or
not similar in nature and complexity to
the contract to be bid, within the
relevant period as provided in the
Bidding Documents. The statement
shall include all information required in
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the PBDs prescribed by the GPPB.
16. To verify if the BAC 20. From the post Did the BAC pass
declared the post-qualified qualification report of the the LCB/bidder with
bidder with LCB as the Lowest TWG with supporting the LCB in all the
documents and duly criteria for post-
reviewed by the BAC, qualification?
(LCRB) at its submitted bid
computations and analysis,
price or its calculated bid price, check if the LCB passed all
whichever is lower the criteria for post
qualification.
(IRR) of RA 9184, as amended on 21. Match the name of the Did the BAC declare
September 2, 2009: LCRB as approved by the the bid of the post-
34.4. If the BAC determines that the HOPE with the name of qualified LCB as the
bidder with the Lowest Calculated Bid bidder as indicated in the Lowest Calculated
passes all the criteria for post- BAC Resolution declaring the Responsive Bid
qualification, it shall declare the said results of the post- (LCRB)?
bid as the Lowest Calculated qualification and
Responsive Bid, and recommend to recommending LCRB, if
the Head of the Procuring Entity the applicable.
award of contract to the said bidder
If Yes, proceed
at its submitted bid price or its to: AWARD OF
calculated bid price, whichever is CONTRACT.
lower.
If No, proceed to
the Audit Sub-
Objectives in
case of Post-
disqualificatio
n of the bidder
with the LCB.
IN CASE OF POST-DISQUALIFICATION OF THE BIDDER WITH THE LOWEST CALCULATED BID (LCB)
- FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
17. To verify if the BAC, in case 1. From the records of the Did the BAC
of post-disqualification of the BAC Secretariat, check for immediately notify
LCB immediately notified the information on the date of the LCB of the
receipt by the post- post-
LCB in writing of the post-
disqualified bidder of the disqualification?
disqualification with the
notice of post-
grounds for it. disqualification and for the
grounds for such Did the BAC
Implementing Rules and Regulations disqualification indicated indicate in the
(IRR) of RA 9184, as amended on thereon. notice the grounds
September 2, 2009: for post-
34.5. If, however, the BAC disqualification?
determines that the bidder with the
Lowest Calculated Bid fails the criteria
for post-qualification, it shall
immediately notify the said bidder in
writing of its post-disqualification and
grounds for it.
34.6. Immediately after the BAC has
notified the first bidder of its post-
disqualification, and notwithstanding
any pending request for
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reconsideration thereof, the BAC shall
initiate and complete the same post-
with the second Lowest Calculated
Bid. 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
Calculated Responsive Bid. 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
Calculated Responsive Bid.
18. To verify if the BAC 2. Look for the TWG report Did the BAC
conducted and completed the on the post-qualification of conduct and
post-qualification of the second the second rank bidder as complete the post-
reviewed by the BAC. qualification of the
rank bidder using the same
second rank
post-qualification process
bidder?
adopted for the LCB
3. Repeat the audit activities Did the BAC adopt
Implementing Rules and of on post-qualification for the same process
Regulations (IRR) of RA 9184, as the second rank bidder. of verifying,
amended on September 2, 2009: validating and
34.6. the BAC shall initiate 4. Analyze the post- ascertaining all
and complete the same post- qualification reports of the statements made
qualification process on the TWG, as reviewed by the and documents
BAC, for the LCB and the submitted by the
bidder with the second Lowest
second rank bidder to check LCB and the second
Calculated Bid. whether the TWG adopted rank bidder?
the same process of
verifying, validating and
ascertaining all statements
made and documents
submitted by the LCB and
the second rank bidder.
5. From the post Did the second

qualification report of the rank bidder pass
TWG, as reviewed by the the post-
BAC, check if the second qualification?
rank bidder passed the post
qualification.
If Yes, proceed
NOTE: to the Audit
For each post- Sub-objective to
disqualification of the verify if the
next-rank bidder, the BAC declared
BAC is to repeat the the post-
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post-qualification qualified
process until the second-rank
LCRB is declared for bidder as the
award. LCRB after a
request for
The related audit reconsideratio
activities are likewise n of the LCB
to be repeated. (first-rank,
second-rank,
or next-in-
rank, a the
case may be)
has been
denied
If No, proceed to
the Audit Sub-
Objectives in
case of Post-
disqualificatio
n of the bidder
with the LCB.
19. To verify if the BAC 27. From the Minutes of the Did the BAC declare
declared the LCB as the LCRB BAC meeting, analyze if the the LCB as the
after its request for BAC declared the LCB as the LCRB after its
LCRB after its request for request for
reconsideration was granted
reconsideration has been reconsideration was
and it was declared post- granted and it was declared granted and it was
qualified post-qualified. declared post-
qualified?
Implementing Rules and Regulations 28. Match the name of the
(IRR) of RA 9184, as amended on LCRB as approved by the
September 2, 2009: HOPE with the name of
34.6. Immediately after the BAC bidder as indicated in the
has notified the first bidder of its BAC resolution
post-disqualification, and recommending the LCRB.
Lowest Calculated Bid. If the second
bidder passes the post-qualification,
and provided that the request for
has been denied, the second bidder
shall be post-qualified as the bidder
with the Lowest Calculated
Responsive Bid.
20. To verify if the BAC 29. From the Minutes of the Did the BAC declare
declared the post-qualified BAC meeting, analyze if the the post-qualified
second-rank bidder as the BAC declared the post- second-rank bidder
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LCRB after a request for qualified second-rank bidder as the LCRB after a
reconsideration of the LCB as the LCRB after a request request for
(first-rank) has been denied for reconsideration of the reconsideration of
LCB (first-rank) has been the LCB (first-rank)
denied. has been denied?
September 2, 2009:
30. Match the name of the
LCRB as approved by the
HOPE with the name of
bidder as indicated in the
BAC resolution
recommending the LCRB.
Lowest Calculated Bid. If the second
bidder passes the post-qualification,
and provided that the request for
has been denied, the second bidder
shall be post-qualified as the bidder
Responsive Bid.
21. To verify if the BAC 31. Compute the number of Did the BAC
completed the post- days from the BAC complete the post-
qualification process in not Resolution declaring the LCB qualification
and the BAC Resolution process in not more
declaring the LCRB, and than seven (7)
days from the determination of compare this with the 7- calendar days from
the LCB or if extended, such calenday-day requirement. the determination
extension was approved by the of the LCB?
HOPE and not exceeding 30
calendar days
32. If the BAC completed If the BAC
Implementing Rules and Regulations the post-qualification in completed the
(IRR) of RA 9184, as amended on more than seven (7) post-qualification in
September 2, 2009: calendar days, secure a copy more than seven
34.8. The post-qualification process of the document approved (7) calendar days,
shall be completed in not more than by the HOPE extending the was the extension
seven (7) calendar days from the period for the post- approved by the
determination of the Lowest qualification process. HOPE?
Calculated Bid. In exceptional cases,
the post-qualification period may be If the BAC
extended by the Head of the completed the
Procuring Entity, but in no case shall post-qualification in
the aggregate period exceed thirty more than seven
(30) calendar days. (7) calendar days,
was the extension
within the 30-
calendar day
maximum?
22. To verify if the BAC invited 33. From the Minutes of the Did the BAC choose
Observers: BAC meeting on the the Observers
duly recognized private group in from the pool, check for
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a sector or discipline relevant to information on the BACs a. one
the procurement at hand, and a evaluation in regard to: representing the
non-government organization the selection of the COA?
(NGO) from the procuring organization from which
entitys Pool of Observers; the Observer will be b. One
b. that have: invited; representing the
b.1. knowledge, experience or knowledge, experience or duly recognized
expertise in procurement or in expertise in procurement private group in
the subject matter of the or in the subject matter a sector or
contract to be bid; of the contract to be bid; discipline
b.2. no actual or potential no actual or potential relevant to the
conflict of interest in the conflict of interest in the procurement at
contract to be bid; and contract to be bid; and hand?
b.3. conformed with other conformed with other
relevant criteria c. One
determined by the BAC. representing a
the BAC;
non-government
c. at least 3 calendar days prior organization?
to the Post-qualification
d. With knowledge,
experience or
expertise in
September 2, 2009:
procurement or
Section 13. Observers in the subject
13.1. To enhance the transparency of matter of the
the process, the BAC shall, in all stages contract to be
of the procurement process, invite, in bid?
COA, at least two (2) observers, who e. With no actual
shall not have the right to vote, to sit in or potential
its proceedings where: conflict of
a) At least one (1) shall come from a interest in the
duly recognized private group in a contract to be
sector or discipline relevant to the bid?
i) For infrastructure projects, f. Conformed with
national associations of other relevant
constructors duly recognized by criteria
the Construction Industry determined by
Authority of the Philippines (CIAP), the BAC?
such as, but not limited to the
following:
(1) Philippine Constructors 34. From certified copies of Did the BAC invite
Association, Inc.; the invitations to the the observers at
(2) National Constructors Observers with evidence of least 3 days from
Association of the Philippines, receipt, compare the date of the date of the
Inc.; and receipt with the 3-day post-qualification?
(3) Philippine Institute of Civil minimum requirement.
Engineers (PICE).
ii)
iii) and
b) The other observer shall come from
a non-government organization
(NGO).

Securities
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and Exchange Commission (SEC) or the
criteria:
a) Knowledge, experience or expertise
in procurement or in the subject
matter of the contract to be bid;
conflict of interest in the contract to
be bid; and
c) Any other relevant criteria that may
be determined by the BAC.

Entity considered the Minutes on the Post Entity consider the
comments/observations of the Qualification and the report comments/
Observers
observers.
September 2, 2009:

a) To prepare the report either jointly
or separately indicating their
observations made on the
procurement activities conducted by
the BAC for submission to the Head
of the Procuring Entity, copy
report shall assess the extent of the
BACs compliance with the provisions
of this IRR and areas of
proceedings;
procuring entity and furnish a copy
to the GPPB and Office of the
Ombudsman/Resident Ombudsman.
If no report is submitted by the
observer, then it is understood
that the bidding activity
conducted by the BAC followed
the correct procedure; and
writing the procuring entity
concerned of any actual or potential
interest in the contract to be bid.
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(c) post-qualification summary
report; (d) APP and related
PPMP; and (e) opened
proposals.

appropriate audit
contract;
c. etc.
OFFENSES AND
writing.

appropriate audit
recommendations
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
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OFFENSES AND
this Audit Guide.
of the audit with the auditees audit/ validation document Audit Observation Memorandum (AOM), if applicable
Management reflecting the results of the
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XI. AWARD OF CONTRACT
1. To verify if the conditions/requirements and procedures for the award of contract were
adhered to by the procuring entity;
2. To verify if the award was made within the prescribed period;
approval of the contract were adhered to by the procuring entity.

2. BAC Resolution declaring the LCRB/SCRB and recommending award, approved by the HOPE,
with the following supporting documents:
b. Duly approved program of work and Cost Estimates,
c. Document issued by appropriate entity authorizing the procuring entity to incur
obligations for a specified amount,
d. Other pertinent documents required by existing laws, rules and/or the procuring
entity concerned.
3. Notice of Award signed by the HOPE, with date of release to and receipt by the winning
bidder;
4. Copy of the bid security of the winning bidder stamped received by the BAC Secretariat;
5. Copy of the portions of the receiving records of the BAC, with information on the date of
submission of the Joint Venture Agreement (JVA), if the winning bidder is a Joint Venture;
and the date of posting of the performance security;
7. Copy of the complete set of contract documents duly signed and approved by higher
authorities;
10. Evidences of postings at the conspicuous place at the premises of the procuring entity;
11. Copy of the Minutes of the BAC meeting on the selection of the Observer from the
pool;
12. Copy of reports of the BAC Observers;
13. Copy of the document with the HOPEs disapproval of the award and the justifications
thereto, duly received by the BAC;
14. In case of disapproval of the BACs recommendation for award, copy of the document
with the HOPEs instructions on the steps to be adopted by the BAC.
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1. To verify if the BAC 1. Compare the LCRB Did the BAC
recommended the bidder determined by the BAC in its recommend to the
with the Lowest Calculated deliberations (per Minutes of HOPE the award of
the BAC meeting) with the contract to the bidder
Responsive Bid (LCRB) or
LCRB recommended for with LCRB or the SCRB?
Single Calculated Responsive award in the BAC
Bid (SCRB), if lone, to the Resolution.
HOPE for award
Implementing Rules and Regulations .

September 2, 2009:
to the Head of the Procuring Entity
the award of contract to the bidder
Calculated Responsive Bid after the
post qualification process has been
completed.

recommending award;
c) Duly approved program of work
or delivery schedule, and Cost
Estimates;
amount; and
concerned.

(15) calendar days.
37.1.3. In case of approval, the

immediately issue the Notice of
Award to the bidder with the
Lowest Calculated Responsive Bid.
In the event the Head of the
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disapproval shall be based only on
valid, reasonable, and justifiable
grounds to be expressed in writing,
a copy furnished the BAC.
2. To verify if the BAC 2. From the TWG evaluation Did the BAC
recommended to the HOPE report with supporting recommend to the
the award of the contract to documents and duly HOPE the award of the
reviewed by the BAC and contract to the bidder
the bidder with the LCRB at
BAC Resolution declaring the with the LCRB at the
its submitted price or its
LCRB and recommending lower of the submitted
calculated bid price, award, look for information price and its calculated
whichever is lower, subject to on the contract amount bid price?
ITB Clause 30.3. recommended by the BAC
for award.
(PBDs) for the Procurement of
Edition, (October 2009) approved by
the GPPB per GPPB Resolution No.
06-2009 dated September 30, 2009:
28.4. If the BAC determines that
the Bidder with the Lowest
Calculated Bid passes all the
criteria for post-qualification, it
shall declare the said bid as the
Lowest Calculated Responsive
Bid, and recommend to the Head
of the Procuring Entity the award
of contract to the said Bidder at
calculated bid price, whichever is
lower, subject to ITB Clause
30.3.
3. To verify if the BAC 3. From the BAC Chairmans Did the BAC submit the
submitted the following letter for the HOPE following documents to
documents to the HOPE with submitting the results and the HOPE with the
the documents pertaining to recommendation for
the recommendation, duly award:
award:
received by the Office of the
a. Resolution of the BAC HOPE, look for information a. Resolution of the
recommending award; on the documents BAC recommending
b. Abstract of Bids; submitted. award?
c. Duly approved program of
work and Cost Estimates; b. Abstract of Bids?
d. Document issued by
appropriate entity c. Duly approved
program of work
and Cost
entity to incur obligations Estimates?
for a specified amount;
and d. Document issued by
e. Other pertinent appropriate entity
documents required by authorizing the
existing laws, rules and/ procuring entity to
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or the procuring entity incur obligations for
concerned a specified
amount?
(IRR) of RA 9184, as amended on e. Other pertinent
September 2, 2009: documents required
37.1.1. The BAC shall recommend by existing laws,
to the Head of the Procuring Entity rules and/or the
the award of contract to the bidder procuring entity
with the Lowest Calculated concerned?
Calculated Responsive Bid after the
post qualification process has been
completed.
recommending award;
Cost Estimates;
amount; and
concerned.
4. To verify if the HOPE, or 4. Determine the number of Did the HOPE approve
his/her duly authorized days from the date of the BAC
official, approved the receipt by the HOPE of the recommendation for
recommendation for award award within the 4-, 7-
LCRB/SLRB recommended by
to the date of approval and calendar-day period (or
the BAC for award within 7
compare with the 4-day, 7- 15-calendar-day period
calendar days (4 calendar day or 15-day period. for GOCCs/GFIs)?
days for infrastructure
projects costing P50 million
and below) from the date of
receipt of the
recommendation from the
BAC (15 calendar days for
GOCCs/GFIs)
September 2, 2009:
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recommendation. However, for
infrastructure projects with an ABC
of Fifty Million Pesos (P50,000,000)
and below, the Head of the
Procuring Entity shall approve or
disapprove the said
recommendation within four (4)
calendar days. In the case of
(15) calendar days.

verify if the Notice of Award bidder appearing in the Award as recommended
was issued to the winning Notice of Award with the by the BAC and
winning bidder per approved approved by the HOPE
bidder immediately and
BAC Resolution. immediately issued to
within the validity period of the winning bidder?
the bid security 6. Compare the date of
release of the Notice of
Implementing Rules and Regulations Award with the date of
(IRR) of RA 9184, as amended on approval of the BAC
September 2, 2009: Resolution recommending
37.1.3. In case of approval, the the award.
immediately issue the Notice of
Award to the bidder with the 7. Compare the date of the Was the Notice of
Lowest Calculated Responsive Bid. release of the Notice of Award as recommended
In the event the Head of the Award with the expiry date by the BAC and
Procuring Entity shall disapprove of the bid validity period. approved by the HOPE
such recommendation, such issued to the winning
disapproval shall be based only on bidder within the bid
valid, reasonable, and justifiable validity period of the bid
grounds to be expressed in writing, security?
a copy furnished the BAC.

provided in Section 28 of this IRR.
Annex C
Period of Action on Procurement
Activities
6. To verify if the BAC 8. From the notices to the Did the BAC notify all
notified all the losing bidders losing bidders, look for the the losing bidders within
within the 7 or 4 calendar day date of its receipt and the 7 calendar day
compare with the 7-day or period / 4 calendar day
period (same period provided
4-day requirement. period for ABC
for the HOPE to approve/
P50,000,000 and below
disapprove the BACs Resolution)
9. Also compare the names (same period provided
Implementing Rules and Regulations of the losing bidders notified for the HOPE to
(IRR) of RA 9184, as amended on with those appearing in the approve/ disapprove the
September 2, 2009: Abstract of Bids. BACs Resolution)?

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recommendation. However, for
infrastructure projects with an ABC
of Fifty Million Pesos (P50,000,000)
and below, the Head of the
Procuring Entity shall approve or
disapprove the said
recommendation within four (4)
BAC shall notify all losing bidders of
its decision.
7. To verify if the BAC posted 10. Access the PhilGEPS Did the BAC post the
the Notice of Award within 3 website and the website of Notice of Award within
days from its issuance at the: the procuring entity, and 3 days from its issuance
conduct inspection of the at the:
area where the Notice of
b. website of the procuring
Award is to be posted on the a. PhilGEPS website?
entity, and 3rd day from the issuance of
c. any conspicuous place in the Notice of Award to the b. website of the
the premises of the winning bidder. procuring entity? And
procuring entity.
c. any conspicuous
Implementing Rules and Regulations place in the premises
(IRR) of RA 9184, as amended on of the procuring
September 2, 2009: entity?
Secretariat, shall post, within three
(3) calendar days from its issuance,
the Notice of Award in the
PhilGEPS, the website of the
8. To verify if the procuring 11. From the receiving Did the bidder submit
entity observed the following records of the BAC, compare the JVA within ten (10)
conditions for the execution the date of submission of calendar days from
the Joint Venture Agreement receipt of the notice of
of the contract:
(JVA) with the required 10 award?
a) Submission of valid joint days from receipt of the
venture agreement, if Notice of Award.
applicable, within 10 days
from receipt of the Notice
of Award by the winning
Joint Venture bidder,
b) Posting of performance 12. From the receiving Was the performance
records of the BAC, compare security posted within
security within ten (10)
the date of posting of the ten (10) calendar days
calendar days from receipt
performance security with from receipt by the
by the winning bidder of the required 10 days from winning bidder of the
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the Notice of Award & prior receipt of the Notice of Notice of Award & prior to
to the signing of the Award; also compare with the signing of the contract?
contract in the required the date of the signing of
the contract.
amount, currency, form,
issuing entity, and valid
until the issuance by the
procuring entity of the final 13. Compare the amount, Was the performance
certificate of acceptance, currency, form, issuing security posted in the:
c) Signing of the contract entity, and validity period of a. right amount?
within the same ten (10) the performance security
day period provided that posted by the winning
all the documentary bidder with the b. right currency?
requirements are complied requirements of Sec 39.2 of
the Revised IRR of RA 9184.
with,
c. right form?
d) Approval by higher
authority, if required,
within 15 days from receipt d. right issuing entity?
(25 days for GOCCs)
Implementing Rules and Regulations e. right validity period?

September 2, 2009:
14. Compare the date of Was the contract signed
37.1.4. Notwithstanding the signing of the contract with within 10 calendar days
issuance of the Notice of Award, the required 10-day period from receipt of the
award of contract shall be subject from receipt of the Notice of Notice of Award by the
to the following conditions: Award. winning bidder?
a) Submission of the following
documents within the
prescribed period: 15. Compare the signatory If further approval by
i) Valid JVA, if applicable, (approval) in the contract higher authority is
within ten (10) calendar with the authorized required, was the
days from receipt by the signatory as required by contract approved by
bidder of the notice from the relevant regulations/policies appropriate approving
BAC that the bidder has the and as shown by a copy of a authority or his/her duly
Lowest Calculated valid appointment or office authorized
Responsive Bid, as the case order. representative?
may be; or
ii) In case of infrastructure
projects, valid PCAB license 16. Compare the date of Was the contract
and registration for the type approval of the contract by approved by higher
and cost of the contract to higher authority with the 15- authority within 15
be bid for foreign bidders, day-period (5 days for calendar days (5 days
within 30 calendar days infrastructure projects for infrastructure
from receipt by the bidder of costing P50 M and below) projects costing P50
the notice from the BAC that from receipt (25 days for million and below)?
the bidder has the LCRB, GOCCs). (25 calendar days for
when the treaty or GOCCs)?
international or executive
agreement expressly allows
submission of the PCAB
license and registration for
the type and cost of the
contract to be (sic) as a pre-
condition to the notice of
award.
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e) Posting of performance
f) Signing of the contract as
IRR;
g) Approval by higher authority, if
required, as provided in
performance by the winning bidder
of its obligations under the contract
in accordance with the Bidding
Documents, it shall post a
following schedule: [AS AMENDED
UNDER GPPB RESOLUTION NO. 06-
2009 DATED 30 SEPTEMBER 2009]
Amount of
Form of Performance Performance
to Percentage of
the Total
Contract Price
a) Cash, cashiers/
managers check
issued by a Universal
or Commercial Bank Two percent
b) Bank draft/ (2%)
guarantee or
credit issued by a
Universal or
Commercial Bank;
Provided, however,
that it shall be
confirmed or
authenticated by a
Universal or
Commercial Bank, if
issued by a foreign
bank.
c) Surety bond callable Five percent
upon demand issued (5%)
by a surety or
insurance company
duly certified by the
Insurance Commission
as authorized to issue
such security.
d) Any combination of Proportionate
the foregoing. to share of
form with
respect to
total amount
of security
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the Answer

37.2.1. The winning bidder shall post
the required Performance Security
and enter into contract with the
procuring entity within ten (10)
calendar days from receipt by the
winning bidder of the Notice of
Award.
winning bidder within the same ten
(10) day period provided that all
the documentary requirements are
complied with.

Higher Authority
authority is required, the approving
authority for the contract or his
duly authorized representative shall
be given maximum of fifteen (15)
calendar days from receipt thereof
to approve or disapprove it.
However, for infrastructure projects
with an ABC of Fifty Million Pesos
(P50,000,000) and below, the
maximum period is five (5)
GOCCs, the concerned board or its
duly authorized representative shall
be given a maximum of twenty-five
(25) calendar days from receipt
thereof to approve or disapprove it.
9. To verify if the contract is 17. Obtain from the BAC Are the contract
complete Secretariat or the Project documents complete,
Management Office or the consisting of the
Implementing Rules and Regulations Office responsible for project following:
(IRR) of RA 9184, as amended on implementation/ contract
September 2, 2009: execution for a copy of the a) Contract Agreement;
complete set of documents
37.2.3. The following documents comprising the contract and b) Bidding Documents;
shall form part of the contract: compare with the
a) Contract Agreement; requirements. c) Winning bidders bid,
b) Bidding Documents; including the Eligibility
c) Winning bidders bid, including requirements,
the Eligibility requirements, Technical and Financial
Technical and Financial Proposals, and all other
Proposals, and all other documents/statements
documents/statements submitted;
submitted;
d) Performance Security; d) Performance
e) Credit line in accordance with Security;
the provisions of this IRR, if e) Credit line in
applicable; accordance with the
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f) Notice of Award of Contract; and provisions of this IRR,
g) Other contract documents that if applicable;
may be required by existing laws
and/or the procuring entity f) Notice of Award of
concerned in the Bidding Contract; and
Documents, such as the
construction schedule and S- g) Other contract
curve, manpower schedule, documents that may
construction methods, equipment be required by existing
utilization schedule, construction laws and/or the
safety and health program procuring entity
approved by the Department of concerned in the
Labor and Employment, and Bidding Documents,
PERT/CPM for infrastructure such as the
projects. construction schedule
and S-curve,
manpower schedule,
construction methods,
equipment utilization
schedule, construction
safety and health
program approved by
the Department of
Labor and
Employment, and
PERT/CPM for
infrastructure projects?

1. In case of disapproval by 1. If the HOPE In case of disapproval
the HOPE, verify if the: disapproved the by the HOPE of the
a. grounds for such were recommendation for BACs
expressed in writing and a award, look for the recommendation, did
copy furnished to the document indicating the the HOPE express the
BAC, and grounds for such with grounds for such and
b. written instructions on the evidence of receipt of a furnished a copy to
subsequent steps to be copy thereof by the BAC. the BAC?
adopted were given to the
BAC
In case of disapproval
Implementing Rules and 2. Also look for the by the HOPE of the
Regulations (IRR) of RA 9184, as document indicating the BACs
amended on September 2, 2009: instructions given by the recommendation, did
37.1.3. In case of approval, HOPE on the subsequent the HOPE give
the Head of the Procuring steps to be adopted by instructions to the
Entity shall immediately issue the BAC. BAC on the
the Notice of Award to the subsequent actions to
bidder with the Lowest be adopted?
Calculated Responsive Bid. In
the event the Head of the
Procuring Entity shall
disapprove such
recommendation, such
disapproval shall be based only
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the Answer
on valid, reasonable, and
justifiable grounds to be
expressed in writing, a copy
furnished the BAC.

Infrastructure Projects, June 2006,
published by the GPPB:

5. In case of disapproval of the
recommendation of award the
HOPE shall state the reasons for
disapproval and instruct the BAC
on the subsequent actions to be
adopted.
IN CASE OF FAILURE, REFUSAL, OR INABILITY BY THE WINNING BIDDER TO SUBMIT DOCUMENTS

AND ENTER INTO CONTRACT - FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
1. To verify if the BAC: 1. From the records of the Did the BAC disqualify
a. disqualified, BAC: the winning bidder who,
b. forfeited the bid security of documenting the fact- through his fault, failed,
finding to establish if refused or was unable
and
the winning bidder was to:
c. recommended the a. submit the
responsible for his
imposition of sanctions to failure, refusal, or documents required
the winning bidder who, inability to: (a) to under Section 37.1
through his fault, failed, submit the documents of the Revised IRR
required under Section of RA 9184?
refused or was unable:
37.1 of the Revised IRR or
a. to submit the documents of RA 9184, or (b) to b. to make good its bid
required under Section make good its bid by by entering into a
entering into a contract contract with the
37.1 of the Revised IRR of
with the procuring procuring entity?
RA 9184, or
entity, or (c) post the or
b. to make good its bid by required Performance c. post the required
entering into a contract Security within the Performance
with the procuring entity, period stipulated in the Security within the
or Revised IRR of RA 9184 period stipulated in
c. post the required or in the Bidding the Revised IRR of
Performance Security Documents; RA 9184 or in the
within the period documenting the Bidding
deliberations/evaluation Documents?
stipulated in the Revised
conducted and the
IRR of RA 9184 or in the
decisions arrived at;
Bidding Documents documenting the Did the BAC forfeit the
recommendations made bid security of the
Implementing Rules and to the HOPE, winning bidder who,
Regulations (IRR) of RA 9184, as through his fault, failed,
amended on September 2, 2009: look for information on the: refused or was unable
to:
40.1. If the bidder with the Lowest disqualification of the a. submit the
Calculated Responsive Bid/Highest said bidder, documents required
Rated Responsive Bid or the forfeiture of the bid under Section 37.1
bidder with the Single security and of the Revised IRR
Calculated/Rated Responsive Bid, recommendation of the of RA 9184?
fails, refuses or is unable to imposition of sanctions or
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submit the documents required to the winning bidder. b. to make good its bid
under Section 37.1 of this IRR or by entering into a
to make good its bid by entering contract with the
into a contract with the procuring procuring entity?
entity or post the required or
Performance Security within the c. post the required
period stipulated in this IRR or in Performance
the Bidding Documents, the bid Security within the
security shall be forfeited and the period stipulated in
appropriate sanctions provided in the Revised IRR of
this IRR and existing laws shall be RA 9184 or in the
imposed, except where such Bidding
failure, refusal or inability is Documents?
through no fault of the said
bidder.
Did the BAC
recommend the
imposition of sanctions
to the winning bidder
who, through his fault,
failed, refused or was
unable to:
a. submit the
documents required
under Section 37.1
of the Revised IRR
of RA 9184?
or
b. to make good its bid
by entering into a
contract with the
procuring entity?
or
Performance
Security within the
period stipulated in
the Revised IRR of
RA 9184 or in the
Bidding
Documents?
bidder who, due to his fault, the disqualification of the winning bidder who,
winning bidder who, due to due to his fault,
refused, failed, or was unable
his fault, refused, failed, or refused, failed, or was
to enter into contract, post
was unable to enter into unable to enter into
the required performance contract, post the required contract, post the
security, or submit other performance security, or required performance
required documents within submit other required security, or submit
the time stipulated, initiated documents within the time other required
and completed the post- stipulated. documents within the
qualification process on the time stipulated, initiate
bidder with the second Look also for information on and complete the post-
the conduct of post- qualification process on
Lowest Calculated Bid
qualification on the bidder the bidder with the
Implementing Rules and Regulations with the second Lowest second Lowest
(IRR) of RA 9184, as amended on Calculated Bid. Calculated Bid?
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September 2, 2009:
40.2. In the case of the failure,
refusal or inability of the bidder
Responsive Bid to submit the
documents required under Section
37.1 of this IRR or to enter into
contract and post the required
Performance Security, as provided
in this Section, the BAC shall
disqualify the said bidder, and shall
initiate and complete the post- NOTE:
with the second Lowest Calculated For the audit on the
Bid:....This procedure shall be Post-Qualification for
repeated until the Lowest the Procurement of
Calculated Responsive Bid/Highest Infrastructure
Rated Responsive Bid is Projects conducted by
determined for award. However, if the BAC, perform the
no bidder passes post-
audit activities
qualification, the BAC shall declare
the bidding a failure and conduct a pertaining to these
re-bidding with re-advertisement. procurement
Should there occur another failure activities in another
of bidding after the conduct of the part of this Guide.
contracts re-bidding, the procuring
entity concerned may enter into a
bidder with the Single the disqualification of the winning bidder with the
winning bidder with the SCRB who, due to his
SCRB who, due to his fault, fault, refused, failed, or
(SCRB) who, due to his fault, refused, failed, or was was unable to enter into
refused, failed, or was unable unable to enter into contract, post the
to enter into contract, post contract, post the required required performance
the required performance performance security, or security, or submit
security, or submit other submit other required other required
required documents within documents within the time documents within the
the time stipulated, declared stipulated. time stipulated,
the bidding a failure and
Look also for information on a. declare the bidding a
the declaration of the failure?
re-advertisement and/or
bidding a failure and the
posting, as provided for in conduct of a re-bidding with and
Sections 21 and 25 of the re-advertisement. b. conduct a re-bidding
Revised IRR of RA 9184 with re-advertisement
and/or posting?
September 2, 2009: NOTE:
For the audit on the
40.3. In the case of failure, refusal Failure of Bidding for
or inability of the bidder with the
the Procurement of
Single Calculated/Rated Responsive
Bid to submit the documents Infrastructure
required under Section 37.1 of this Projects and on the
IRR or to enter into contract and Competitive/ Public
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post the required Performance Bidding for the
Security, as provided in this Procurement of
Section, the BAC shall disqualify Infrastructure
the said bidder, and shall declare Projects, perform the
the bidding a failure and conduct a
audit activities
re-bidding with re-advertisement
and/or posting, as provided for in pertaining to these
Sections 21 and 25 of this IRR. procurement
Should there occur another failure activities in other
of bidding after the conduct of the parts of this Guide.
contracts re-bidding, the procuring
entity concerned may enter into a
INVOLVEMENT OF THE BAC OBSERVERS

duly recognized private group from the pool, check for a. one representing
in a sector or discipline information on the BACs the COA?
at hand, and a non- the selection of the b. one representing
government organization organization from which the duly
(NGO) from the procuring the Observer will be recognized private
entitys Pool of Observers; invited; group in a sector
knowledge, experience or or discipline
b. that have:
expertise in procurement relevant to the
or in the subject matter procurement at
of the contract to be bid; hand?
no actual or potential
contract to be bid;
conflict of interest in the c. one representing a
b.2. no actual or potential contract to be bid; and non-government
conflict of interest in the conformed with other organization?
contract to be bid; and relevant criteria
b.3. conformed with other determined by the BAC. d. with knowledge,
relevant criteria determined by experience or
the BAC; expertise in
c. at least 3 calendar days procurement or in
prior to the start of the the subject matter
activity of the contract to
be bid?
(IRR) of RA 9184, as amended on e. With no actual or
September 2, 2009: potential conflict
of interest in the
contract to be bid?
f. Conformed with
stages of the
other relevant
criteria determined
by the BAC?
2. From certified copies of Did the BAC invite the
in its proceedings where:
the invitations to the observers at least 3
Observers with evidence of days prior to the start of
receipt, compare the date of the activity?
receipt with the 3-day
minimum requirement.
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i) For infrastructure projects,
national associations of
constructors duly recognized by
the Construction Industry
(CIAP), such as, but not limited
to the following:
Association, Inc.;
Association of the
Engineers (PICE).
ii)
iii) and
organization (NGO).

the Securities
following criteria:
be bid;
to be bid; and

Entity considered the Minutes on the Post consider the comments/
comments/observations of Qualification, the meetings observations of the
on the award of contract, Observers?
the Observers
and the report of the
Implementing Rules and Regulations Observers check whether a
(IRR) of RA 9184, as amended on deliberation was made on
September 2, 2009: the comments /observations
13.4. The observers shall have the of the observers.
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proceedings;
Ombudsman/Resident
procedure; and
be bid.

proposals.

appropriate audit
the contract;
c. etc.
OFFENSES AND
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Commission on Audit
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invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
Accounts
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Prepared by:
Commission on Audit
XII. FAILURE OF BIDDING
DECLARED BY THE BIDS AND AWARDS COMMITTEE (BAC)
A. AUDIT OBJECTIVE:


5. Documentary evidences that the bidder with the Lowest Calculated Responsive Bid refused,
without justifiable cause, to accept the award of contract, and no award was made in accordance
with Section 40 of the RA 9184 and Revised IRR;

Audit Criteria
Audit Activities Yes No Particulars of
Audit Question the Answer
a) No bids were received; a) No bids were
b) All prospective bidders received?
a) No bids were received; or were declared ineligible;
b) All prospective bidders c) all bids failed to comply b) All prospective
were declared ineligible; or with all the bid bidders were
c) All bids failed to comply requirements, declared ineligible?
with all the bid d) all bids failed post-
requirements, or qualification, or
d) all bids failed post- e) the bidder with the Lowest c) All bids failed to
qualification, or Calculated Responsive Bid comply with all the
refused, without justifiable bid requirements?
e) the bidder with the
cause, to accept the award
Lowest Calculated
of contract, and no award or
Responsive Bid refused, was made in accordance d) all bids failed
without justifiable cause, with Section 40 of the RA post-qualification?
to accept the award of 9184 and Revised IRR.
contract, and no award or
was made in accordance e) the bidder with
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Commission on Audit
Audit Criteria
with Section 40 of the RA the Lowest
9184 and Revised IRR . Calculated
e) funds are not available Responsive Bid
refused, without
Implementing Rules and Regulations justifiable cause,
(IRR) of RA 9184, as amended on to accept the
September 2, 2009: award of contract,
and no award was
35.1. The BAC shall declare the made in
bidding a failure when: accordance with
a) No bids are received; Section 40 of the
b) All prospective bidders are RA 9184 and
declared ineligible; Revised IRR?
c) All bids fail to comply with all the
bid requirements or fail post-
Calculated Responsive
Bid/Highest Rated Responsive
Bid refuses, without justifiable
cause, to accept the award of
contract, and no award is made
in accordance with Section 40 of
the Act and this IRR.

January 2009:

figures.
notice of award.
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Prepared by:
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Audit Criteria
commencement of any
MYOA issued by DBM for the
said MYP.
charged.
2. To verify if the BAC 2. From the minutes of the Did the BAC
determined the reason for the BAC meetings held for the determine the reason
failed bidding by conducting a purpose, look for information for the failed bidding
on the review and evaluation by conducting a
conducted on the: (a) terms, mandatory review
evaluation of the :
(b) conditions, (c) and evaluation of the:
a. terms, specifications, and (d) cost a. terms in the
b. conditions, estimates and the Bidding Documents?
c. specifications, recommendations/decisions
d. cost estimates made possible b. conditions in the
in the Bidding Documents revisions/adjustments. Bidding Documents?
Implementing Rules and Regulations c. specifications in the

(IRR) of RA 9184, as amended on Bidding Documents?
September 2, 2009:
35.2. In order to determine the d. cost estimates?
reason for the failed bidding, the
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Prepared by:
Commission on Audit
Audit Criteria
cost estimates.
concerned units/officials of BAC meetings held for the concerned
the procuring entity, revised purpose and other records of units/officials of the
the procuring entity, look for procuring entity,
information on the revised the following
revisions/adjustments made on as a result of the
conducted: the (a) terms, (b) conditions, review and evaluation
a. terms, (c) specifications, (d) ABC and conducted:
b. conditions, approvals made thereon. a. terms in the
c. specifications, Bidding
d. Approved Budget for the Documents?
Contract (ABC);
had them approved; and b. conditions in the
Bidding
Documents?
posting c. specifications in the
Bidding
Documents?
September 2, 2009:
d. cost estimates?
35.2. In order to determine the
reason for the failed bidding, the 4. From the records of the Did the BAC conduct
BAC shall conduct a mandatory BAC look for information on a re-bidding?
review and evaluation of the terms, the re-bidding conducted.
cost estimates.
35.3. Based on its findings, the

BAC shall revise the terms,
NOTE:
conditions, and specifications, and if
necessary, adjust the ABC, subject For the audit on the re-
to the required approvals, and bidding conducted
perform the audit using
provided for in Section 21.2 of this the portion of this
IRR Guide on
Competitive/Public
35.4. All bidders who have Bidding for the
initially responded to the Invitation Procurement of
to Bid/Request for Expression of Infrastructure Projects.
Interest and have been declared
eligible or short listed in the previous
biddings shall be allowed to submit
new bids. The BAC shall observe the
bidding(s).
35.5. Should there occur a

second failure of bidding, the
procuring entity may resort to
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Audit Criteria
negotiated procurement, as provided
for in Section 53.1 of this IRR.
4. To verify if the BAC invited 5. From the Minutes of the Did the BAC choose
Observers: BAC meeting on the selection the Observers
a. representing the COA, the of the Observer from the considering:
duly recognized private group pool, check for information
in a sector or discipline on the BACs evaluation in 1. one representing
relevant to the procurement regard to: the COA?
at hand, and a non- the selection of the
government organization organization from which the
(NGO) from the procuring Observer will be invited; 2. One representing
entitys Pool of Observers; knowledge, experience or the specific
expertise in procurement or relevant the duly
b. that have:
in the subject matter of recognized private
the contract to be bid; group in a sector or
no actual or potential discipline relevant to
conflict of interest in the the procurement at
contract to be bid;
contract to be bid; and hand?
b.2. no actual or potential
conformed with other
relevant criteria determined
contract to be bid; and 3. One representing
by the BAC.
b.3. conformed with other a non-government
relevant criteria determined by organization?
the BAC;
4. With knowledge,
experience or
activity expertise in
Implementing Rules and Regulations procurement or in
(IRR) of RA 9184, as amended on the subject matter of
September 2, 2009: the contract to be
bid?
the process, the BAC shall, in all 5. With no actual or
stages of the potential conflict of
procurement process, invite, in interest in the
addition to the representative of the contract to be bid?
shall not have the right to vote, to sit 6. Conformed with
in its proceedings where: other relevant
a) At least one (1) shall come from a criteria determined
duly recognized private group in a by the BAC?
i) ) For infrastructure projects,
national associations of 6. From certified copies of the Did the BAC invite the
constructors duly recognized by invitations to the Observers observers at least 3
the Construction Industry with evidence of receipt, days from the date of
Authority of the Philippines compare the date of receipt the bid evaluation?
(CIAP), such as, but not limited with the 3-day minimum
to the following: requirement.
Association, Inc.;
Association of the
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Audit Criteria
Engineers (PICE).
ii) .
iii) and
organization (NGO).

the Securities
following criteria:
be bid;
to be bid; and


appropriate audit
the contract;
c. etc.
NOTE:
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Audit Criteria
invited in writing.

appropriate audit
recommendations.

of non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
Accounts
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Prepared by:
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XIII. FAILURE OF BIDDING DECLARED BY THE HOPE
A. AUDIT OBJECTIVE:
To verify if the conditions/requirements for the declaration of failure of bidding were adhered
to by the procuring entity

Documents on the declaration of failure of bidding by the HOPE with supporting
documents on the existence of the grounds used to justify the said declaration that:
3. there was prima facie evidence of collusion between or among the bidders
themselves,
5. there was prima facie evidence of any act which restricted, suppressed or nullified
competition, or
and reasonable grounds such as the physical and economic conditions have
significantly changed so as to render the project no longer economically, financially, or
technically feasible, as determined by the Head of the Procuring Entity, or
and reasonable grounds such as the project is no longer necessary as determined by
the Head of the Procuring Entity, or
and reasonable grounds such as the source of funds for the project has been
withheld or reduced through no fault of the procuring entity.

the Answer
1. To verify if the HOPE 1. From the documents on Did the HOPE declare a
declared a failure of bidding the declaration of failure of failure of bidding for
for reason that: bidding by the HOPE, look reason that:
a. no funds available;
reason for such declaration. a. no funds available?
b. there is prima facie
evidence of collusion OR
between:
b.1. appropriate public b. there was prima facie
officers or employees of evidence of collusion
the procuring entity, or between
b.2. between the BAC and appropriate public
any of the bidders, or officers or
employees of the
b.3. among the bidders
procuring entity?
themselves, or
b.4. a bidder and a third
party, OR
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Prepared by:
Commission on Audit
the Answer
restricts, suppresses or c. there was prima
nullifies or tends to facie evidence of
collusion between
restrict, suppress or nullify
the BAC and any of
competition; the bidders?
or
c. the BAC is found to have OR
failed in following the
prescribed bidding c. there was prima
procedures; facie evidence of
or collusion between
d. the award of the contract or among the
bidders themselves?
will not redound to the
benefit of the GOP, for
OR
justifiable and reasonable
grounds such as: (i) if the d. there was prima
physical and economic facie evidence of
conditions have collusion between a
significantly changed so as bidder and a third
to render the project no party?
longer economically,
OR
financially, or technically
feasible, as determined by e. there was prima
the Head of the Procuring facie evidence of any
Entity; (ii) if the project is act which restricted,
no longer necessary as suppressed or
determined by the Head of nullified competition?
the Procuring Entity; and
(iii) if the source of funds
for the project has been OR
withheld or reduced
f. the BAC was found
through no fault of the to have failed in
procuring entity. following the
prescribed bidding
Implementing Rules and Regulations procedures?
September 2, 2009: OR
Section 41. The Head of the
Procuring Entity reserves the right to g. the award of the
reject any and all bids, declare a contract will not
failure of bidding, or not award the redound to the
contract in the following situations: benefit of the GOP,
a) If there is prima facie evidence of for justifiable and
collusion between appropriate reasonable grounds
public officers or employees of the such as the physical
procuring entity, or between the and economic
BAC and any of the bidders, or if conditions have
the collusion is between or among significantly changed
the bidders themselves, or so as to render the
between a bidder and a third project no longer
party, including any act which economically,
restricts, suppresses or nullifies or financially, or
tends to restrict, suppress or technically feasible,
nullify competition; as determined by the
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the Answer
b) If the BAC is found to have failed Head of the
in following the prescribed bidding Procuring Entity?
procedures; or
c) For any justifiable and reasonable OR
ground where the award of the
contract will not redound to the h. the award of the
benefit of the GOP, as follows: (i) contract will not
if the physical and economic redound to the
conditions have significantly benefit of the GOP,
changed so as to render the for justifiable and
project no longer economically, reasonable grounds
financially, or technically feasible, such as the project is
as determined by the Head of the no longer necessary
Procuring Entity; (ii) if the project as determined by the
is no longer necessary as Head of the
determined by the Head of the Procuring Entity?
Procuring Entity; and (iii) if the
source of funds for the project has OR
no fault of the procuring entity. i. the award of the
contract will not
redound to the
benefit of the GOP,
for justifiable and
reasonable grounds
such as the source
of funds for the
project has been
withheld or reduced
through no fault of
the procuring entity?

appropriate audit
the contract;
c. etc.
OFFENSES AND
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the Answer
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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ALTERNATIVE METHODS
OF PROCUREMENT FOR
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OF INFRASTRUCTURE PROJECTS
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NEGOTIATED PROCUREMENT OF INFRASTRUCTURE PROJECTS
Negotiated Procurement is a method of procurement of infrastructure projects whereby

the procuring entity directly negotiates a contract with a technically, legally, and financially
capable contractor.
Cases when negotiated procurement are allowed:

(1) Two Failed Biddings (there has been failure of public bidding for the second time),
(2) Emergency Cases,
(3) Take-Over of Contracts,
(4) Adjacent or Contiguous,
(5) Agency-to-Agency,
(6) Small Value Procurement,
(7) NGO Participation,
(8) Community Participation.
I. PREPARATORY ACTIVITY: REGISTRY OF CONTRACTORS
The Registry of Contractors is developed and maintained by the Procuring Entity to ensure
that it is updated.
A. AUDIT OBJECTIVE
To determine if the Procuring Entity developed and maintained a Registry of Contractors

Documentation of the System on the Registry of contractors maintained by the Procuring
Entity

of the
Answer
entity maintained a registry of registry of contractors Entity maintain a
contractors as basis for selecting maintained by the Procuring registry of
Entity. contractors as
the contractors for negotiations
basis for selecting
the contractors for
negotiations?
September 2, 2009:
53.1.2.2. All Procuring Entities shall
maintain a registry of contractors as
basis for selecting the contractors for
negotiations.
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Prepared by:
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of the
Answer
appropriate audit
contract;
c. etc.
NOTE:
September 2, 2009:
invited in writing.

appropriate audit
recommendations
recommendations.

of non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
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Negotiated Procurement of Infrastructure Projects
After Two (2) Failed Biddings
II. PREPARATORY ACTIVITY: BIDDING DOCUMENTS
A. AUDIT OBJECTIVE:
To verify if after the Procuring Entitys conduct of mandatory review due to two (2) failed
biddings, the Bidding Documents for the specific procurement followed the standard forms
and manuals prescribed by the Government Procurement Policy Board (GPPB)

1. The procuring entitys Customized Bidding Documents for Infrastructure Projects;

the Answer
1. To verify if the procuring 1. From the Did the BAC declare two
entity conducted a documentation of the (2) failed biddings?
mandatory review of the earlier two (2) biddings
conducted, look for
terms, conditions,
declaration that there
estimates on the basis of have been two (2) failed
which the BAC revised and biddings.
agreed on the:
a. minimum technical 2. From the TWG Did the Procuring Entity
specifications, evaluation report with conduct a mandatory
b. adjusted the ABC supporting documents review of the terms,
and duly reviewed by the conditions,
Implementing Rules and Regulations BAC, minutes of the specifications, and cost
(IRR) of RA 9184, as amended on meetings of the BAC, and estimates after two
September 2, 2009: BAC Resolutions, look for failed biddings?
evidences of the conduct
53.1.1. After conduct of the of the mandatory review
mandatory review of the terms, of the terms, conditions,
conditions, specifications, and specifications and cost
cost estimates, as prescribed in estimates by concerned
Section 35 of this IRR, the BAC Offices of the Procuring
shall revise and agree on the Entity.
minimum technical
specifications, and if necessary, 3. From the minutes of Did the BAC revise and
adjust the ABC, subject to the the BACs meetings and agree on the:
required approvals. However BAC Resolutions, look for
the ABC cannot be increased by information on the a. minimum technical
more than twenty percent deliberation, revision and specifications?
(20%) of the ABC for the last agreement on the
failed bidding. minimum technical b. Revised ABC?
specifications and
adjusted ABC; and
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Prepared by:
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the Answer
6.2. Once issued by the GPPB, recommendation to the Did the BAC submit the
the use of the Generic HOPE for approval. revised minimum
Procurement Manuals (GPMs), technical specifications
Philippine Bidding Documents to the HOPE for
(PBDs), and other standard approval?
whenever necessary, to suit the Did the BAC submit the
particular needs of the procuring adjusted ABC to the
entity, modifications may be HOPE for approval?
to the approval of the GPPB. 4. From the minutes of Did the BAC ensure that
the BACs meetings and the adjustment in the
BAC Resolutions, look for ABC was at a maximum
information on the BACs of 20% of the ABC for
evaluation to ensure that the second failed
the adjustment in the ABC bidding?
was at a maximum of
20% of the ABC for the
second failed bidding.

Documents for the specific adopted customized Documents/
procurement include the Bidding Documents and Information complete:
the results of the earlier
information and are
validation of this element l. Revised Approved
according to the forms
showed that these are Budget for the
indicated in the Customized compliant with the Contract?
Bidding Documents approved Philippine Bidding
by the GPPB or the Philippine Documents for the m. Request for Price
Bidding Documents for the Procurement of Quotation?
Procurement of Infrastructure Projects and
Infrastructure Projects, 3rd Section 17.1 of the n. Eligibility
Implementing Rules and Requirements?
Edition (October 2009)
issued by the GPPB and Regulations of RA 9184,
secure from the BAC o. Instruction to
Section 17 of the Secretariat duly certified Bidders, including
Implementing Rules and copies of the Bidding
Regulations of RA 9184 as Documents for the specific - scope of bid?
amended on September 2, procurement and compare
2009: these with the customized - documents
comprising the
b. Approved Budget for the Bidding Documents of the
procuring entity. bid?
Contract;
b. Request for Submission - criteria for
If the customized
of Price Quotation; eligibility?
Bidding Documents are not
compliant, compare the
d. Instruction to Bidders, - price quotations
procurement-specific
including scope of bid, evaluation
Bidding Documents with
methodology/
documents comprising the Philippine Bidding
criteria?
the bid, criteria for Documents for the
eligibility, bid evaluation Procurement of
- post-qualification
methodology/criteria in Infrastructure Projects
methodology?
accordance with the Act, issued by the GPPB.
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the Answer
well as the date, time and - date of the pre-
place of the pre-bid bid conference, if
conference (where applicable?
- time of the pre-bid
of bids and opening of conference?
bids;
d.1. including: Following - Place of the pre-
completion of the bid conference?
negotiations, the BAC
shall request all - Deadline for
contractors remaining submission of
in the proceedings to price quotations?
submit on a specified
- Place of
date, a best and final
submission of
offer with respect to price quotations?
all aspects of the
proposals, and - Date of opening of
d.2. selection of the price quotations?
successful offer on the
basis of such best and - Time of opening of
final offers meeting price quotations?
the minimum technical
- Place of opening
requirements and not of price
exceeding the ABC; quotations?
applicable; - following
f. Plans/Drawings and completion of the
Technical Specifications; negotiations,
g. Form of Bid, Price Form, requesting all
and Bill of Quantities; contractors
remaining in the
h. Delivery Time or
proceedings to
submit on a
i. Form, Amount, and specified date, a
Validity of Performance best and final offer
Security and Warranty; with respect to all
1. Form of Contract and aspects of the
General and Special proposals?
Conditions of Contract;
- selection of the
Implementing Rules and Regulations successful offer on
(IRR) of RA 9184, as amended on the basis of such
September 2, 2009: best and final
offers meeting the
17.1. The Bidding Documents shall minimum technical
be prepared by the procuring requirements and
entity following the standard forms not exceeding the
and manuals prescribed by the ABC?
GPPB.
a. Approved Budget for the p. Scope of work?
Contract;
b. Invitation to Bid; q. Plans/Drawings
c. Eligibility Requirements; and Technical
d. Instruction to Bidders, Specifications?
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the Answer
documents comprising the bid,
criteria for eligibility, bid r. Price Form and Bill
evaluation methodology/criteria of Quantities?
in accordance with the Act, and
post-qualification, as well as the s. Completion
date, time and place of the pre- Schedule?
applicable), submission of bids t. Form of Contract
and opening of bids; and General and
e. Scope of work, where Special Conditions
applicable; of Contract?
f. Plans/Drawings and Technical
Specifications; Are the Bidding
g. Form of Bid, Price Form, and Bill Documents in the
of Quantities; required form:
h. Completion Schedule;
i. Form, Amount, and Validity a. Request for Price
Period of Bid Security; Quotation?
[REVISED BY the Revised IRR of
RA 9184, item 54.4. Except for b. Instructions to
Limited Source Bidding under Bidders?
Section 49 of this IRR, submission
of bid securities may be c. Price Quotation
dispensed with.] Data Sheet?
j. Form, Amount, and Validity of
Performance Security and d. General Conditions
Warranty; of the Contract?
[Also per Revised IRR of RA
9184, Section 54.5. e. Special Conditions
Performance and warranty of Contract?
securities, as prescribed in
Sections 39 and 62 of this IRR, f. Schedule of
shall be submitted for contracts Requirements?
acquired through the
alternative methods of g. Technical
procurement, except for Specifications?
Shopping under Section 52 and
Negotiated Procurement under h. Price Quotation
Sections 53.2 (emergency Forms?
cases), 53.9 (small value
procurement), 53.10 (lease of
real property), and 53.13 (UN
agencies).]
and
k. Form of Contract and General
Contract.
53.1.4. Following completion of

the negotiations, the procuring
entity shall request all suppliers,
contractors, or consultants
remaining in the proceedings to
submit, on a specified date, a
best and final offer with respect
to all aspects of their proposals.
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the Answer
select the successful offer on the
basis of such best and final offers
which should meet the procuring
entitys minimum technical
requirements and should not
exceed the ABC.
GPPB Resolution No. 05-2009

Bidding Documents Third Edition
for all of their procurement
activities.

contract;
the contract;
c. etc.
NOTE:
PENALTIES portion
Implementing Rules and of this Audit Guide.
invited in writing.
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Commission on Audit
the Answer
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
Accounts
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Prepared by:
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Negotiated Procurement Of Infrastructure Projects
III. PREPARATORY ACTIVITY: PRE-PROCUREMENT CONFERENCE
The pre-procurement conference is the forum where all officials involved in the
procurement meet and discuss all aspects of a specific procurement activity, which includes the
technical specifications, the Approved Budget for the Contract (ABC), the applicability and
appropriateness of the recommended method of procurement and the related milestones, the
bidding documents, and availability of the pertinent budget release for the project.
Conference.

Secretariat;
2. Request for Submission of Price Quotation;

Audit Sub-objective
Answer
1. To verify if the BAC 1. Secure from the BAC Did the BAC conduct
conducted the Pre- Secretariat a duly certified the Pre-Procurement
Procurement Conference copy of the Minutes of Conference prior to
prior to the posting or the Pre-Procurement the posting or
Conference and compare issuance of the
issuance of the Invitation or the date the conference Request for
Request for Submission of was held with the date Submission of Price
Price Quotation indicated in the print-out Quotation?
of website pages where
Implementing Rules and Regulations the Invitation or Request
(IRR) of RA 9184, as amended on for Submission of Price
September 2, 2009: Quotation
20.1. Prior to the Advertisement or was posted.
through its Secretariat shall call for
a Pre-Procurement Conference.
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Prepared by:
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Audit Sub-objective
Answer
to the Pre-Procurement Secretariat duly certified the Pre-Procurement
Conference included the BAC, copies of the documents Conference include
officials, including Charts, etc) which it used a. BAC?
consultants hired by the as bases for identifying
procuring entity, who and notifying the b. Secretariat?
prepared the Bidding participants to the Pre-
Documents and the draft Procurement Conference, c. unit or officials
Request for Submission of including duly certified who prepared
Price Quotation copies of the notices the Bidding
issued with evidence of Documents and
Implementing Rules and Regulations receipt by the the draft
(IRR) of RA 9184, as amended on participants. Request for
September 2, 2009: Submission of
20.1. The pre-procurement 3. From the Minutes of Price Quotation?
conference shall be attended by Pre-Procurement
the BAC, the Secretariat, the unit Conference look for the d. consultants
or officials, including consultants names of the members of hired by the
hired by the procuring entity, who the BAC, the members of procuring entity,
prepared the Bidding Documents the Secretariat, the who prepared
and the draft Invitation to Bid, for officials and/or the Bidding
each procurement. consultants who prepared Documents and
the Bidding Documents the draft
and the draft Request for Request for
Submission of Price Submission of
Quotation. Price Quotation?
3. To verify if during the Pre- 4. From the Minutes of Did the participants
Procurement Conference the Pre-Procurement led by the BAC
participants, led by the BAC, Conference look for discuss and confirm
information on the the:
performed the following
presentation of the scope
tasks and attained the related of the contract, the ABC, a. Description of
objectives: and contract duration, the the scope of the
a. Discussed relevant deliberation thereon, and contract?
the conclusions reached
as a result of the b. That there was
the description of the scope
deliberation; and analyze no splitting?
of the contract, the ABC, and if they led to the
contract duration; confirmation of the c. Revised ABC?
description of the scope of
b. Discussed relevant
the contract, that there d. Contract
information and confirmed was no splitting, the ABC, duration?
that the procurement is in and the contract duration.
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Audit Sub-objective
Answer
plan (PPMP) and annual 5. From the Minutes of Did the participants
procurement plan (APP); Pre-Procurement led by the BAC
Conference look for discuss and confirm
c. Discussed relevant information on the that the procurement
information and confirmed presentation of the review is in accordance with
readiness of the procurement of the PPMP and APP, the the PPMP and APP?
at hand on the following: deliberation thereon, and
c.1. the availability of
as a result of the
appropriations and deliberation; and analyze
programmed budget for if they led to the
contract; confirmation of the
c.2. completeness of the procurement is in
Bidding Documents and accordance with the PPMP
their adherence to relevant and APP.
general procurement
guidelines; 6. From the Minutes of Did the participants
c.3. completion of the Pre-Procurement led by the BAC
detailed engineering
information on the that the procurement
according to the prescribed presentation of at hand is ready as
standards in the case of information, the to:
infrastructure projects; deliberation thereon, and
c.4. confirmation of the the conclusions reached a. availability of
availability of ROW and the as a result of the appropriations and
ownership of affected deliberation; and analyze programmed
properties. if they led to the budget for the
confirmation of the contract?
d. Reviewed, modified and readiness of the
agreed on the criteria for procurement at hand as b. completeness of
eligibility screening, to: the Bidding
evaluation, and post- a. availability of Documents?
appropriations and
qualification;
programmed budget c. adherence of the
e. Reviewed and adopted for the contract, Bidding
the procurement schedule, b. completeness of the Documents with
Bidding Documents the PBDs/
including deadlines and
and their adherence to customized
timeframes, for the different the Philippine Bidding Bidding
activities; Documents (PBDs)/ Documents?
f. Reiterated and customized Bidding
Documents, d. completion of the
emphasized the importance
c. completion of the detailed
of confidentiality and the detailed engineering engineering
applicable sanctions and according to the according to the
penalties, as well as agreed prescribed standards; prescribed
on measures to ensure d. availability of ROW and standards?
compliance with the the ownership of
foregoing; affected properties. e. availability of ROW
and the ownership
g. Confirmed that there was of affected
properties?
no splitting; and
h. identified the
justification for the change in
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
the mode of procurement Did the participants
from public bidding to led by the BAC
Negotiated Procurement and discuss and confirm
the justifications for
agreed on the
the change in the
recommendations to the mode of procurement
HOPE. from public bidding to
Negotiated
Generic Procurement Manual for Procurement and
the Procurement of agreed on the
Infrastructure Projects (May recommendations to
2006) published by the GPPB: the HOPE?
Methodology: How is Negotiated
Procurement conducted? 7. From the Minutes of Did the participants
Pre-Procurement led by the BAC
The procedures for the conduct Conference look for discuss and confirm
of public bidding should be information on the the criteria for:
observed. presentation of the criteria
for eligibility screening, a. Eligibility
Implementing Rules and price quotation evaluation, screening?
Regulations (IRR) of RA 9184, as and post-qualification, the
amended on September 2, 2009: deliberation thereon, and b. Price Quotation
20.1. During the conference, the the conclusions reached evaluation?
participants, led by the BAC, shall: as a result of the
a. Confirm the description and deliberation; and analyze c. Post-
scope of the contract, the if they led to the qualification?
ABC, and contract duration; confirmation of the criteria
b. Ensure that the procurement for eligibility screening,
is in accordance with the price quotation evaluation,
project and annual and post-qualification.
procurement plans;
c. Determine the readiness of 8. From the Minutes of Did the participants
the procurement at hand, Pre-Procurement led by the BAC
including, among other Conference look for discuss and confirm
aspects, the following: information on the the adoption of the
i) availability of appropriations presentation of the procurement schedule
and programmed budget for procurement schedule, including deadlines
the contract; including deadlines and and timeframes for
ii) completeness of the Bidding timeframes for the the different
Documents and their different activities, the no- activities?
adherence to relevant contact rule, the
general procurement deliberation thereon, and
guidelines; the conclusions reached
iii) completion of the detailed as a result of the
engineering according to deliberation; and analyze
the prescribed standards in if they led to the
the case of infrastructure confirmation of the
projects; adoption of the
iv) confirmation of the procurement schedule
availability of ROW and the including deadlines and
ownership of affected timeframes for the
properties. different activities.
d. Review, modify and agree
on the criteria for eligibility
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Audit Sub-objective
Answer
screening, evaluation, and 9. From the Minutes of Did the participants
post-qualification; Pre-Procurement led by the BAC
e. Review and adopt the Conference look for reiterate and
procurement schedule, information on the emphasize the
including deadlines and reiteration and emphasis importance of
timeframes, for the different of the importance of confidentiality and
activities; and confidentiality and the the applicable
f. Reiterate and emphasize the applicable sanctions and sanctions and
importance of confidentiality penalties, as well as the penalties, as well as
and the applicable sanctions agreement on measures the agreement on
and penalties, as well as to ensure compliance. measures to ensure
agree on measures to compliance?
ensure compliance with the
foregoing.

accordance with the approved
APP of the procuring entity. The
APP shall bear the approval of
the Head of the Procuring Entity
or second-ranking official
designated by the Head of the
Procuring Entity to act on his
behalf, and must be consistent
with its duly approved yearly
budget.
48.2. In accordance with Section

10 of this IRR, as a general rule,
the Procuring Entities shall adopt
public bidding as the general
mode of procurement and shall
see to it that the procurement
program allows sufficient lead
time for such public bidding.
Alternative methods shall be
resorted to only in the highly
exceptional cases provided for in
this Rule.
48.3. The method of

procurement to be used shall be
as indicated in the Approved
Procurement Plan (APP). If the
original mode of procurement
recommended in the APP was
ultimately pursued, the BAC,
and recommend the change in
the mode of procurement to be

Contracts is not allowed. Splitting
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Audit Sub-objective
Answer
of Government Contracts means
the division or breaking up of
GOP contracts into smaller
quantities and amounts, or
dividing contract implementation
into artificial phases or sub-
contracts for the purpose of
requirements of law and this
IRR, specially the necessity of
public bidding and the
requirements for the alternative
methods of procurement.

January 2009:

figures.
head of the agency shall
identify and thereafter notify the
notice of award.
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Audit Sub-objective
Answer
commencement of any
MYOA issued by DBP for the
said MYP.
charged.
Definition:
3.1. Allotment - document
issued by the Department of
Budget and Management
(DBM) which authorizes an
agency to incur obligations for
a specified amount as
contained in a legislated
issued may either be trough
the Agency Budget Matrix
(ABM) which covers the

(APP) the requisite
must prepare to reflect the
works to be procured) that it
plans to undertake within the
calendar year. This document
contains the following
information:
program/project;
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
3.2.2. Project management
office or end-user unit;
procurement;
3.2.4. Procurement method to
be adopted;
Contract.

following:
NGs including SUCs (referred to
in Section 2.1)
appropriated items as reflected
in the annual budget of the
national government agency, the
amount corresponding to either
the full cost of a single year or
multi-year program/project/
activity. For multi-year projects,
for which a Multi-Year
Obligational Authority has been
issued, the ABC shall be the
amount reflected in the Multi-
Section 2.2)

(CMIs) those itme in the
budget of agencies for which the
the National Expenditure

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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
agencies in order to authorize
the latter to enter into multi-year
A MYOA, which contains an
annual breakdown of the full
project cost, obligates agencies
to include in their budget
proposal for the ensuring years
the amount programmed for the
said year(s).

Constitution. The NEP shall be
the basis of the general
appropriations bill, which upon
its enactment, becomes the
General Appropriations Act
(GAA).

the contract;
c. etc.
NOTE:
Also refer to the
Implementing Rules and OFFENSES AND
Regulations (IRR) of RA 9184, as PENALTIES portion
amended on September 2, 2009: of this Audit Guide.
invited in writing.

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Audit Sub-objective
Answer
audit recommendations develop appropriate audit
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
auditees Management reflecting the results of applicable
Accounts
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Prepared by:
Commission on Audit
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Two-Failed

Biddings) was in accordance with the rules and regulations

Secretariat;

Audit Sub-objective
Answer
1. To verify if through a 1. From the BAC Did the BAC through
Resolution the BAC presented Resolution, look for a Resolution present
two (2) failed biddings as the information on the BACs two (2) failed
justification, that is, two biddings as the
failed biddings and the justification for the
procurement and recommended recommendation for the negotiated
the change in the mode of change in the mode of procurement and
procurement to the HOPE for procurement to the HOPE recommend change in
approval for approval. the mode of
procurement to the
Implementing Rules and Regulations HOPE for approval?
September 2, 2009:

this IRR.

the HOPE
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
a. recommended the alternative recommending Negotiated recommend the
mode of procurement: Procurement as the method alternative mode of
of procurement, look for procurement:
the approval of the HOPE. Negotiated
HOPE,
Procurement to the
and HOPE?
approve Negotiated

the HOPE.

appropriate audit
contract;
c. etc.
NOTE:
recommendations
Also refer to the
Implementing Rules and Regulations OFFENSES AND
(IRR) of RA 9184, as amended on PENALTIES portion of
September 2, 2009: this Audit Guide.
invited in writing.
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Commission on Audit
Audit Sub-objective
Answer
appropriate audit
recommendations
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
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Commission on Audit
V. SELECTION OF CONTRACTORS AND

REQUEST FOR SUBMISSION OF PRICE QUOTATIONS
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement was in


2. Minutes of the BACs meetings on the selection and invitation of contractors;
3. List of selected contractors to be invited;

Audit Sub-objective Audit Activities Audit Question Yes No Particulars of the
Audit Criteria Answer
1. To verify if the BAC used 1. From the Minutes of the Did the BAC use
the Procuring Entitys registry BAC meetings, TWG the Procuring
of contractors (bona fide evaluation reports Entitys registry of
supported with copies of contractors who
contractors licensed with the
the Procuring Entitys have been
CIAP whose eligibility Registry of Contractors classified under the
documents are on file with and/or the DPWH type of
the Procuring Entity Contractors Registry, look contract/project
concerned) or the for information on the basis where the subject
Department of Public Works of identification of the contract falls, as
and Highways (DPWH) contractors to be invited for one of the bases
Contractors Registry, and the negotiations and the list for selecting the
who have been classified of identified contractors contractors to be
based on the agreed-upon invited for the
under the type of
basis. negotiations?
contract/project where the
subject contract falls as basis
for selecting the contractors
to be invited for the Did the BAC use
negotiations the DPWH Registry
of contractors who
Implementing Rules and Regulations have been
(IRR) of RA 9184, as amended on classified under the
September 2, 2009: type of
contract/project
53.1.2. The BAC shall invite and where the subject
engage in negotiations with a contract falls, as
sufficient number of contractors to one of the bases
ensure effective competition. for selecting the
53.1.2.1. In the case of contractors to be
infrastructure projects, bona-fide invited for the
contractors licensed with the negotiations?
CIAP whose eligibility
documents are on file with the
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Prepared by:
Commission on Audit
procuring entity concerned or the Did the BAC arrive
DPWH Contractors Registry, as the at a list of
case may be, and who have been contractors to be
classified under the type of invited as agreed
contract/ project where the during the
subject contract falls are meetings
eligible to be invited for conducted for the
negotiation. Other contractors not purpose?
previously deemed eligible may also
apply for eligibility.

contractors as basis for selecting the
contractors for negotiations.
2. To verify if the BAC invited 2. Compare the names of Did the BAC invite
all contractors identified from the contractors to whom and engage in
the Registry (ies) and other invitations have been sent negotiations with a
by the BAC (with evidence sufficient number
of receipt) with the list of of contractors?
the purpose selected contractors.

September 2, 2009:
sufficient number of contractors to
ensure effective competition.
53.1.2.1. In the case of

infrastructure projects, bona fide
contractors licensed with the CIAP
whose eligibility documents are on
file with the procuring entity
concerned or the DPWH Contractors
Registry, as the case may be, and
who have been classified under the
type of contract/project where the
subject contract falls are eligible to
be invited for negotiation. Other
contractors not previously deemed
eligible may also apply for eligibility.
the Request for Submission of procurement, request the the Request for
Price Quotations BAC Secretariat for advance Submission of Price
continuously in the PhilGEPS information on the first day Quotations
of any posting. continuously in
website and the website of
the:
the procuring entity 4. On the first day of posting
concerned, if available, for 7 access the PhilGEPS website, 1. PhilGEPS
calendar days starting on the the website of the procuring website for 7
date of posting entity concerned, if calendar days
available. Print the page starting on the
Implementing Rules and Regulations where the notice was posted date of
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Prepared by:
Commission on Audit
(IRR) of RA 9184, as amended on (to form part of the audit advertisement?
September 2, 2009: evidences).
54.2. For alternative methods of 5. Access the websites at 2. website of the

procurement, advertisement and random during the 7-day procuring entity
posting as prescribed in Section period to verify the postings. concerned, if
21.2.1 of this IRR may be available, for 7
dispensed with: Provided, OR calendar days
however, That the BAC, through From the printouts of the starting on the
its Secretariat, shall post the web pages indicating the date of
invitation or request for dates of printing, obtained advertisement?
submission of price quotations for from and duly certified by
Shopping under Sections 52.1(b) the BAC Secretariat as true
and Negotiated Procurement and correct, compare these
under Sections 53.1 (two-failed dates with the required
biddings) and 53.9 (small value dates of posting.
calendar days.
the Request for Submission of procurement, request the the Invitation to
Price Quotation continuously BAC Secretariat for advance Bid:
at any conspicuous place
of any posting. 1. continuously for
reserved for the purpose in
seven (7) calendar
the premises of the procuring 7. Conduct ocular inspection days?
entity for 7 calendar days, as on the first day of posting.
certified by the head of the 2. at the
BAC Secretariat of the 8. Repeat the ocular conspicuous place
procuring entity inspections (may be at reserved for the
random) during the 7-day purpose in the
Implementing Rules and Regulations period to verify the postings. premises of the
(IRR) of RA 9184, as amended on procuring entity?
September 2, 2009: 9. Request for the
certification of the head of 3. as certified by
54.2. For alternative methods of the BAC Secretariat. the head of the
procurement, advertisement and BAC Secretariat of
posting as prescribed in Section the procuring
21.2.1 of this IRR may be entity?
dispensed with: Provided,
however, That the BAC, through
its Secretariat, shall post the
invitation or request for
submission of price quotations for
Shopping under Sections 52.1(b)
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Prepared by:
Commission on Audit
calendar days.

appropriate audit
the contract;
c. etc.
NOTE:
Also refer to the
Regulations (IRR) of RA 9184, as PENALTIES portion of
amended on September 2, 2009: this Audit Guide.
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
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Accounts
NOTES:
1. Based on the following requirement of the Generic Procurement Manual for the
Procurement of Infrastructure Projects (May 2006) published by the GPPB:
o Methodology: How is Negotiated Procurement conducted?

The procedures for the conduct of public bidding should be observed.
Audit Guide on the Procedures: Competitive/Public Bidding are to be observed
with particular attention given to compliance by the BAC of the following
provisions of the Revised IRR of RA 9184 during bid evaluation up to award:
53.1.4. Following completion of the negotiations, the procuring entity shall request all
suppliers, contractors, or consultants remaining in the proceedings to submit, on a
specified date, a best and final offer with respect to all aspects of their proposals.
53.1.5. The procuring entity shall select the successful offer on the basis of such best
and final offers which should meet the procuring entitys minimum technical
requirements and should not exceed the ABC.
53.1.3. Any requirements, guidelines, documents, clarifications, or other information

relative to the negotiations that are communicated by the procuring entity to a
supplier, contractor, or consultant shall be communicated on an equal basis to all
other suppliers, contractors, or consultants engaging in negotiations with the
procuring entity relative to the procurement.

Contracts means the division or breaking up of GOP contracts into smaller quantities
and amounts, or dividing contract implementation into artificial phases or sub-
contracts for the purpose of evading or circumventing the requirements of law and
this IRR, specially the necessity of public bidding and the requirements for the
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EMERGENCY CASES
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EMERGENCY CASES

capable contractor in any of the following cases: (1) Two Failed Biddings, (2) Emergency Cases,
(3) Take-Over of Contracts, (4) Adjacent or Contiguous, (5) Agency-to-Agency, (6) Small Value
Procurement, (7) NGO Participation, (8) Community Participation.
Emergency Cases - In case of imminent danger to life or property during a state of

calamity, or when time is of the essence arising from natural or man-made calamities or other
causes where immediate action is necessary to prevent damage to or loss of life or property, or to
restore vital public services, infrastructure facilities and other public utilities.
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement in Emergency

Cases was in accordance with the rules and regulations

Secretariat;

Audit Sub-objective
Answer
calamity, or or property during a to life or
b. time is of the essence arising state of calamity, or property during
from natural or man-made b. time is of the essence a state of
calamities or other causes arising from natural or calamity?
where immediate action is man-made calamities
necessary to prevent damage or other causes where or
to or loss of life or property, or immediate action is b. time is of the
necessary to prevent essence arising
damage to or loss of from natural or
infrastructure facilities and
life or property, or to man-made
other public utilities restore vital public calamities or
services, infrastructure other causes
Implementing Rules and Regulations facilities and other where
(IRR) of RA 9184, as amended on public utilities immediate
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
September 2, 2009: action is
necessary to
53.2. Emergency Cases. In case of prevent damage
imminent danger to life or property to or loss of life
during a state of calamity, or when or property, or
time is of the essence arising from to restore vital
natural or man-made calamities or public services,
other causes where immediate action infrastructure
is necessary to prevent damage to or facilities and
loss of life or property, or to restore other public
vital public services, infrastructure utilities?
the justification for adoption of Resolution, look for validate the
the alternative method of information on the justification for
BACs validation of the adoption of the
procurement: Negotiated
justification for alternative method
Procurement and through a
adoption of the of procurement:
Resolution recommended said alternative method of Negotiated
method to the HOPE for approval procurement: Procurement and
Negotiated recommended said
Implementing Rules and Regulations Procurement and method to the
(IRR) of RA 9184, as amended on recommended said HOPE for approval?
September 2, 2009: method to the HOPE
for approval.

the HOPE.

approved the alternative method Resolution approve
of procurement: Negotiated recommending the Negotiated
Procurement negotiated procurement Procurement as the
as an alternative method, method of
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
Implementing Rules and Regulations look for the approval of procurement?
(IRR) of RA 9184, as amended on the HOPE.
September 2, 2009:
the HOPE.

contract;
c. etc.
NOTE:
recommendations
Also refer to the
(IRR) of RA 9184, as amended on PENALTIES portion
September 2, 2009: of this Audit Guide.
invited in writing.

recommendations
recommendations.
Also determine if
non-compliance.
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
NOTES:

Audit Guide on the Procedures: Competitive/Public Bidding are to be observed.


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TAKE-OVER OF CONTRACTS
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Take-over of contracts, which have been rescinded or terminated for causes provided for
in the contract and existing laws, where immediate action is necessary to prevent damage to or
loss of life or property, or to restore vital public services, infrastructure facilities and other public
utilities.
I. PREPARATORY ACTIVITY: REGISTRY OF CONTRACTORS
A. AUDIT OBJECTIVE
To determine if the Procuring Entity developed and maintained a Registry of Contractors

Documentation on the Registry of contractors maintained by the Procuring Entity

Answer
entity maintained a registry registry of contractors Entity maintain a
of contractors as basis for maintained by the registry of
Procuring Entity. contractors as
selecting the contractors for
basis for selecting
negotiations
the contractors for
negotiations?
September 2, 2009:
contractors as basis for selecting
the contractors for negotiations.

appropriate audit
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Prepared by:
Commission on Audit
Answer
be made on the basis of regard to instances of non-
the contract; compliance.
c. etc.
audit recommendations NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
Accounts
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TAKE-Over of Contracts
II. APPROVAL OF THE ALTERNATIVE METHOD
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Take-Over) was
in accordance with the rules and regulations

1. copy of the approved minutes of BAC meetings duly certified by the BAC Secretariat;

Audit Sub-objective
Answer
1. To verify if the BAC validated: 1. From the minutes of BAC Did the BAC validate:
a. that the contract for the meetings look for
project has been terminated or information on the BACs a. that the contract
validation: for the project has
rescinded; and
a. that the contract for the been terminated
b. there is a need for immediate project has been or rescinded?
action to prevent damage to or terminated or rescinded;
loss of life or property, or to and and
restore vital public services, b. there is a need for b. there is a need for
infrastructure facilities and immediate action to immediate action
other public utilities prevent damage to or to prevent damage
loss of life or property, or to or loss of life or
Implementing Rules and Regulations to restore vital public property, or to
(IRR) of RA 9184, as amended on services, infrastructure restore vital public
September 2, 2009: facilities and other public services,
utilities. infrastructure
53.3. Take-over of contracts, which facilities and other
have been rescinded or terminated public utilities?
for causes provided for in the
contract and existing laws, where
immediate action is necessary to
prevent damage to or loss of life or
property, or to restore vital public
services, infrastructure facilities and
other public utilities.
2. To verify if the BAC validated 2. From the BAC Resolution, Did the BAC validate
the justification for adoption of look for information on the justification for
the alternative method of the BACs validation of adoption of the
the justification for alternative method of
adoption of the procurement:
Procurement (Take-Over of alternative method of Negotiated
Contracts) and through a procurement: Negotiated Procurement (Take-
Resolution recommended said Procurement (Take-Over) Over) and
method to the HOPE for approval and recommended said recommend said
method to the HOPE for method to the HOPE
Implementing Rules and Regulations approval. for approval?
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Commission on Audit
Audit Sub-objective
Answer
September 2, 2009:


the HOPE.
3. To verify if the HOPE 3. From the BAC Resolution Did the HOPE
approved the alternative method recommending the approve Negotiated
of procurement: Negotiated negotiated procurement as Procurement as the
an alternative method, look method of
Procurement (Take-Over)
for the approval of the procurement?
HOPE.
September 2, 2009:
the HOPE.
53.3.3. Authority to negotiate

contracts for projects under these
exceptional cases shall be subject to
prior approval by the Heads of the
Procuring Entities concerned, within
their respective limits of approving
authority.
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Commission on Audit
Audit Sub-objective
Answer
4. To communicate the results of 4. Prepare the appropriate
the audit/ validation with audit/ validation document Audit Observation Memorandum (AOM)
management reflecting the results of the
to management
September 15, 2009 re- Rules and
Regulations on Settlement
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Prepared by:
Commission on Audit
Take-Over of Contracts
III. NEGOTIATION
A. AUDIT OBJECTIVE:
To verify if the negotiation conducted were as required

2. Documentation preliminary to inviting the second LCB for negotiation, including the
invitation;
3. Minutes of the BACs meetings on the negotiations;
4. Minutes of the BACs meetings on the selection of the BAC Observers;
5. Invitation letters for the BAC Observers, duly received by them;

NEGOTIATION WITH THE SECOND LCB FOR THE PROJECT
negotiated the contract BAC meetings, TWG negotiate the
starting with the bidder with evaluation reports with contract starting
supporting documents duly with the second
the second lowest calculated
reviewed by the BAC, look lowest calculated
bid for the project under
for information on the bid at the bidders
consideration at the bidders BACs negotiations. original price?
original bid price

September 2, 2009: NOTES:
If negotiation
53.3.
prospered, proceed to
53.3.1. The contract may be Post-qualification
negotiated starting with the then Award using the
second lowest calculated bidder Audit Guide for
for the project under consideration Competitive/ Public
at the bidders original bid price. Bidding for
53.3.2. If negotiation fails,... Infrastructure
Projects.
contracts for projects under
these exceptional cases shall be If negotiation failed,
subject to prior approval by the
proceed to the next
Heads of the Procuring Entities
concerned, within their
audit Sub-objective.
respective limits of approving
authority.
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WHEN NEGOTIATION WITH THE SECOND LCB FOR THE PROJECT FAILED
1. When the negotiation with 1. From the Minutes of the When the
the second LCB failed, to BAC meetings, TWG negotiation with
verify if the BAC negotiated evaluation reports with the second LCB
supporting documents duly failed, did the BAC
the contract with the bidder
reviewed by the BAC, look negotiate the
with the third lowest for information on the contract with the
calculated bid for the project BACs negotiations. third lowest
under consideration at the calculated bid at
bidders original bid price the bidders
original price?
September 2, 2009:
53.3. NOTES:
53.3.1.
53.3.2. If negotiation fails, then If negotiation prospered,
negotiation shall be done with proceed to Post-
the third lowest calculated bidder
qualification then
at his original price. If the
negotiation fails again, a short Award using the Audit
list of at least three (3) eligible Guide for Competitive/
contractors shall be invited to Public Bidding for
submit their bids, and Infrastructure Projects.
negotiation shall be made
starting with the lowest
calculated bidder. If negotiation failed,
proceed to the next audit
Sub-objective.
these exceptional cases shall be
authority.
WHEN NEGOTIATION WITH THE THIRD LCB FOR THE PROJECT FAILED
of contractors (bona fide evaluation reports Entitys registry of
contractors licensed with the CIAP supported with copies of contractors who
whose eligibility documents are
Registry of Contractors classified under the
on file with the Procuring Entity and/or the DPWH type of
concerned) or the Department Contractors Registry, look contract/project
of Public Works and for information on the basis where the subject
Highways (DPWH) of identification of the contract falls, as
Contractors Registry, and contractors to be invited for one of the bases
who have been classified the negotiations and the for selecting the
under the type of shortlist of identified contractors to be
contractors. invited for the
contract/project where the
negotiations?
for preparing the shortlist of
contractors to be invited for
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Prepared by:
Commission on Audit
the negotiations Did the BAC use
the DPWH Registry
Implementing Rules and Regulations of contractors who
(IRR) of RA 9184, as amended on have been
September 2, 2009: classified under the
type of
53.3. contract/project
53.3.1. where the subject
53.3.2. If negotiation fails, then contract falls, as
negotiation shall be done with one of the bases
the third lowest calculated/ for selecting the
highest rated bidder at his contractors to be
original price. If the negotiation invited for the
fails again, a short list of at least negotiations?
three (3) eligible contractors
shall be invited to submit their
bids, and negotiation shall be Did the BAC arrive
made starting with the lowest at the shortlist of
calculated bidder. contractors to be
invited using the
53.1.2.2. All Procuring Entities criteria and
shall maintain a registry of procedures as
contractors as basis for selecting agreed during the
the contractors for negotiations. meetings
conducted for the
purpose?
at least three short listed the contractors to whom at least three (3)
contractors to submit their invitations have been sent short listed
by the BAC (with evidence contractors to
bids
of receipt) with the submit their bids?
contractors in the shortlist.
September 2, 2009:
53.3.2. If negotiation fails, then
negotiation shall be done with
the third lowest calculated bidder
at his original price. If the
negotiation fails again, a short
list of at least three (3) eligible
contractors shall be invited to
submit their bids, and
negotiation shall be made
starting with the lowest
calculated bidder.
3. To verify if the BAC NOTE: Did the BAC

negotiated starting with the negotiate starting
bidder with the lowest Proceed to the Audit with the bidder
Guide on Bid Evaluation with the lowest
calculated bid (LCB)
calculated bid?
and onwards under
Implementing Rules and Regulations Competitive/Public
(IRR) of RA 9184, as amended on Bidding for
September 2, 2009: Infrastructure Projects.
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Prepared by:
Commission on Audit
the third lowest calculated/
QUESTION:
highest rated bidder at his
original price. If the negotiation What will happen if
fails again, a short list of at least after negotiation which
three (3) eligible contractors prospered, the bidder
bids, and negotiation shall be was post-disqualified?
made starting with the lowest
calculated/highest rated bidder.
NOTES:

53.1.3. Any requirements, guidelines, documents, clarifications, or other

information relative to the negotiations that are communicated by the procuring
entity to a supplier, contractor, or consultant shall be communicated on an equal
basis to all other suppliers, contractors, or consultants engaging in negotiations
with the procuring entity relative to the procurement.
53.1.6. In all stages of the negotiations, observers shall be invited.

quantities and amounts, or dividing contract implementation into artificial
phases or sub-contracts for the purpose of evading or circumventing the
requirements of law and this IRR, specially the necessity of public bidding and
the requirements for the alternative methods of procurement.
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission
of bid securities may be dispensed with.

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ADJACENT OR CONTIGUOUS
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Prepared by:
Commission on Audit
Negotiated Procurement is a method of procurement of infrastructure projects

whereby the procuring entity directly negotiates a contract with a technically, legally, and
financially capable contractor in any of the following cases: (1) Two Failed Biddings, (2)
Emergency Cases, (3) Take-Over of Contracts, (4) Adjacent or Contiguous, (5) Agency-to-
Agency, (6) Small Value Procurement, (7) NGO Participation, (8) Community Participation.
Adjacent or Contiguous - Where the subject contract is adjacent or contiguous to an

on-going Infrastructure Project
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Adjacent

or Contiguous) was in accordance with rules and regulations
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING

PAPER

4. BAC Resolution recommending negotiated procurement, duly approved by the
HOPE.

Audit Sub-objective
Answer
1. To verify if the BAC validated 1. From the minutes of BAC Did the BAC validate
that: meetings look for that:
a. the project is adjacent or information on the BACs
contiguous to an on-going validation that: a. the project is
Infrastructure Project; a. adjacent or contiguous to adjacent or
an on-going contiguous to an
b. that the original contract is
Infrastructure Project; on-going
the result of a Competitive
b. that the original contract Infrastructure
Bidding; is the result of a Project?
c. the subject contract to be Competitive Bidding;
negotiated has similar or c. the subject contract to be
related scopes of work; negotiated has similar or b. that the original
d. it is within the contracting related scopes of work; contract is the
capacity of the contractor; d. it is within the result of a
e. the contractor uses the same contracting capacity of Competitive
the contractor; Bidding?
prices or lower unit prices as
e. the contractor uses the
in the original contract less
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------ Technical Services Office
Special Services Sector GUIDE IN THE AUDIT OF PROCUREMENT
Commission on Audit First Update - December 2009
Page 422
Audit Sub-objective
Answer
mobilization cost; same prices or lower unit c. the subject
f. the amount involved does not prices as in the original contract to be
exceed the amount of the contract less mobilization negotiated has
cost; similar or related
ongoing project;
f. the amount involved does scopes of work;?
g. the contractor has no not exceed the amount
negative slippage/delay; of the ongoing project;
h. the negotiations for the g. the contractor has no d. it is within the
procurement are commenced negative slippage/delay, contracting
before the expiry of the h. the negotiations for the capacity of the
original contract. procurement are contractor?
commenced before the
Implementing Rules and Regulations expiry of the original
(IRR) of RA 9184, as amended on contract. e. the contractor uses
September 2, 2009: the same prices or
lower unit prices
53.4. Adjacent or Contiguous. Where as in the original
the subject contract is adjacent or contract less
contiguous to an on-going Infrastructure mobilization cost?
Project or Consulting Service where the
consultants have unique experience and f. the amount
expertise to deliver the required service: involved does not
Provided, however, That (a) the original exceed the
contract is the result of a Competitive amount of the
Bidding; (b) the subject contract to be ongoing project?
negotiated has similar or related scopes
of work; (c) it is within the contracting
capacity of the contractor/consultant; (d) g. the contractor has
the contractor/consultant uses the same no negative
prices or lower unit prices as in the slippage/delay?
original contract less mobilization cost;
(e) the amount involved does not exceed
the amount of the ongoing project; and h. the negotiations
(f) the contractor/ consultant has no for the
negative slippage/delay: Provided, procurement are
further, That negotiations for the commenced
procurement are commenced before the before the expiry
expiry of the original contract. of the original
contract?
the justifications for adoption of look for information on the justification for
Procurement (Adjacent or
alternative method of Negotiated
Contiguous) and through a procurement: Negotiated Procurement
Resolution recommended said Procurement (Adjacent or (Adjacent or
method to the HOPE for approval Contiguous) and Contiguous) and
recommended said recommend said
Implementing Rules and Regulations method to the HOPE for method to the HOPE
(IRR) of RA 9184, as amended on approval. for approval?
September 2, 2009:

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Audit Sub-objective
Answer

the HOPE.
of procurement: Negotiated negotiated procurement as Procurement
an alternative method, look (Adjacent or
for the approval of the Contiguous) as the
Contiguous)
HOPE. method of
procurement?
September 2, 2009:
the HOPE.

appropriate audit
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Page 424
Audit Sub-objective
Answer
contract;
c. etc.
invited in writing.

appropriate audit
recommendations
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
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Adjacent or Contiguous
II. NEGOTIATION
A. AUDIT OBJECTIVE:
To verify if the negotiations conducted were as required
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING

PAPER

2. Documentation preliminary to inviting the contractor with the on-going adjacent or
contiguous project for negotiation, including the invitation;
3. copy of contract for the on-going adjacent or contiguous project;

1. To verify if the BAC 1. From the Minutes of the BAC Did the BAC
negotiated the contract with meetings, TWG evaluation negotiate the
the contractor of the on- reports with supporting contract with the
documents duly reviewed by contractor of the
going adjacent or contiguous
the BAC, look for information on-going adjacent
project identified during the
on the BACs negotiations. or contiguous
evaluation/deliberations and project identified
as approved by the HOPE 2. From the Minutes of the during the
BAC meetings, TWG evaluation evaluation/delibera
reports with supporting tions and as
documents, duly reviewed by approved by the
September 2, 2009:
the BAC, and the contract for HOPE?
53.4. Adjacent or Contiguous. the on-going adjacent or
Where the subject contract is contiguous project, check if
adjacent or contiguous to an on- the name of the contractor is
going Infrastructure Project or the same.
Consulting Service where the
consultants have unique experience
and expertise to deliver the required
NOTES:
service: Provided, however, That (a)
the original contract is the result of a
Competitive Bidding; (b) the subject If negotiations
contract to be negotiated has similar prospered, proceed to
or related scopes of work; (c) it is Award using the Audit
within the contracting capacity of Guide for Competitive/
the contractor/consultant; (d) the Public Bidding for
contractor/consultant uses the same Infrastructure Projects.
prices or lower unit prices as in the
original contract less mobilization
cost; (e) the amount involved does
not exceed the amount of the If negotiations failed,
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Page 426
ongoing project; and (f) the the project is to be
contractor/ consultant has no subjected to
negative slippage/delay: Provided, competitive/public
further, That negotiations for the bidding. For the audit,
procurement are commenced before
adopt the Audit Guide
the expiry of the original contract.
for Competitive/Public
Bidding for
Infrastructure Projects.

appropriate audit
of non-compliance.
the contract;
c. etc.
Also refer to the
OFFENSES AND
invited in writing.

appropriate audit
recommendations.

of non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
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Accounts
NOTES:
1. Based on the following requirement of the Generic Procurement Manual for

the Procurement of Infrastructure Projects (May 2006) published by the GPPB:

for the rest of the procurement procedures, the Audit Guide on the
Procedures: Competitive/Public Bidding are to be observed.
Implementing Rules and Regulations (IRR) of RA 9184, as amended on September 2,

2009:

quantities and amounts, or dividing contract implementation into artificial
phases or sub-contracts for the purpose of evading or circumventing the
requirements of law and this IRR, specially the necessity of public bidding and
the requirements for the alternative methods of procurement.
54.4. Except for Limited Source Bidding under Section 49 of this IRR,
submission of bid securities may be dispensed with.

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AGENCY-TO-AGENCY
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NEGOTIATED PROCUREMENT FOR INFRASTRUCTURE PROJECTS

AGENCY-TO-AGENCY
Negotiated Procurement is a method of procurement of infrastructure projects

whereby the procuring entity directly negotiates a contract with a technically, legally, and
financially capable contractor in any of the following cases: (1) Two Failed Biddings, (2)
Emergency Cases, (3) Take-Over of Contracts, (4) Adjacent or Contiguous, (5) Agency-to-
Agency, (6) Small Value Procurement, (7) NGO Participation, (8) Community Participation.
Procurement of infrastructure projects from another agency of the GOP.
For purposes of this Section 53.5 of the Revised IRR of RA 9184, the term agency
excludes GOCCs incorporated under Batas Pambansa Blg. 68, otherwise known as the
Corporation Code of the Philippines. The GPPB shall issue guidelines to implement this
provision
NOTE:
No Audit Guide has been developed for this alternative method of
procurement since no Guidelines has as yet been issued by the GPPB.
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COMMUNITY PARTICIPATION
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COMMUNITY PARTICIPATION

Community Participation - Where, in the interest of project sustainability or to achieve

certain specific social objectives, it is desirable in selected project components to call for
participation of local communities in the delivery of services, the procuring entity shall propose the
procedures, specifications, and contract packaging which are subject to the approval of the GPPB.
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Community

Participation) was in accordance with the rules and regulations

3. documentation of the proposed procedures, specifications and contract packaging
including letter of submission to GPPB and its approval;

Audit Sub-objective
Answer
1. To verify if the BAC: 1. From the BAC Resolution, Did the BAC validate
look for information on the justification for
a. validated the justification for the BACs validation of adoption of the
adoption of the alternative
method of procurement:
alternative method of Negotiated
Negotiated Procurement procurement: Negotiated Procurement?
Community Participation, Procurement, validation
that is, in the interest of that there is no splitting Did the BAC validate
project sustainability or to and recommended said that there is no
achieve certain specific method of procurement splitting?
social objectives, to the HOPE for approval.
Did the BAC
b. validated that there is no recommend the
splitting, and
procurement:
Negotiated
c. through a Resolution Procurement to the
recommended said method HOPE for approval?
to the HOPE for approval
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Audit Sub-objective
Answer
September 2, 2009:
53.12. Community Participation.
Where, in the interest of project
sustainability or to achieve certain
specific social objectives, it is
desirable in selected project
components to call for participation of
local communities in the delivery of
services, the procuring entity shall
propose the procedures,
specifications, and contract packaging
which are subject to the approval of
the GPPB.


the HOPE.

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Audit Sub-objective
Answer
Procurement
HOPE.
September 2, 2009:
the HOPE.
3. To verify if the procuring 3. From the documentation Did the procuring

entity proposed the procedures, of the proposed entity submitted to
specifications and contract procedures, specifications the GPPB for approval
and contract packaging, the proposed the
packaging to the GPPB for
look for the letter of the procedures,
approval procuring entity submitting specifications and
to GPPB for its approval. contract packaging?
September 2, 2009:
the GPPB.
4. To verify if the GPPB approved 4. From the documentation Were the proposed
the proposed procedures, of the proposed procedures,
specifications and contract procedures, specifications specifications and
and contract packaging, contract packaging
packaging submitted by the
look for the approval by the approved by the
procuring entity GPPB. GPPB?

September 2, 2009:
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Audit Sub-objective
Answer
the GPPB.

appropriate audit
contract;
c. etc.
NOTE:
recommendations
Also refer to the
invited in writing.

appropriate audit
recommendations
recommendations.
Also determine if
compliance.
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Audit Sub-objective
Answer
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Other relevant criteria:

procurement, except for Shopping under Section 52 and Negotiated Procurement under
Sections 53.2 emergency cases), 53.9 (small value procurement), 53.10 (lease of real
property), and 53.13 (UN agencies).
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Small-Value Procurement - Where the amount of procurement does not exceed the
thresholds prescribed in Annex H of the IRR, RA 984, the procuring entity shall draw up a list of
at least three (3) contractors of known qualifications which will be invited to submit proposals.

1st Class 500,000 500,000 100,000
2nd Class 500,000 500,000 100,000
3rd Class 500,000 400,000 100,000
4th Class 400,000 300,000 50,000
5th Class 300,000 200,000 50,000
6th Class 200,000 100,000 50,000
A. AUDIT OBJECTIVE:


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Audit Sub-objective
Answer
to justify Small-Value the original mode of Did the BAC validate:
Procurement and the amount procurement per APP
involved did not exceed the was public bidding but a. the existence of
thresholds in Annex H of the cannot be ultimately the conditions to
Revised IRR of RA 9184. pursued and of the justify Small-Value
existence of the Procurement?
Implementing Rules and Regulations conditions to justify
(IRR) of RA 9184, as amended on Small-Value OR
September 2, 2009: Procurement.
b. the amount
48.3. The method of procurement to involved did not
be used shall be as indicated in the exceed the
Approved Procurement Plan (APP). If thresholds in
the original mode of procurement Annex H of the
recommended in the APP was public Revised IRR of RA
bidding but cannot be ultimately 9184?
the HOPE.
Where the the amount involved
does not exceed the thresholds
prescribed in Annex H of this IRR.
Guidelines for Shopping and Small Value

Procurement covered by GPPB Resolution
No. 09-2009, dated 23 November 2009:
1. SCOPE AND PURPOSE

a.
b. Small Value Procurement of
goods, infrastructure projects, and
consulting services under 53.9 of the
IRR.

mode of procurement: Small- recommending Small- alternative mode of
Value Procurement as the procurement: Small-
method of procurement, Value Procurement to
HOPE,
look for the approval of the HOPE?
and the HOPE.
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Audit Sub-objective
Answer
approve Small-Value
the HOPE.

contract;
c. etc.
NOTE:
recommendations
Also refer to the
invited in writing.

recommendations
recommendations.
Also determine if
non-compliance.
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Commission on Audit
Audit Sub-objective
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion


A. AUDIT OBJECTIVE
To verify if the Procuring Entity conducted Small-Value Procurement as required by regulations

1. evidences that the contractors identified were bona fide;
2. copy of the requests for price quotations duly received by the contractors;
stated in the RFQ;
9. notice of award;

the Answer
1. To verify if the BAC 1. From relevant minutes of Did the BAC
validated that there was no BAC meetings look for validate that there
splitting information on the BACs was no splitting?
validation that there was no
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the Answer
splitting and the documents
Implementing Rules and Regulations that became their basis for
(IRR) of RA 9184, as amended on such.
September 2, 2009:

Contracts is not allowed. Splitting
of Government Contracts means
the division or breaking up of GOP
contracts into smaller quantities
and amounts, or dividing contract
implementation into artificial
phases or sub-contracts for the
purpose of evading or
circumventing the requirements of
law and this IRR, specially the
necessity of public bidding and the
requirements for the alternative
methods of procurement.

bona fide contractors
price quotations were contractors?
obtained from at least 3 bona
September 2, 2009:
fide contractors.
contractors, of known
qualifications which will be invited
to submit proposals,
3. For procurement with an 2. Ahead of the procurement, Did the

ABC of more than Php request the procuring entity procurement unit
50,000.00, to verify if the for advance information on the of the Procuring
notice of award in:
RFQs in:
a. the PhilGEPS, website, the website of the a. the PhilGEPS
b. the website of the procuring entity concerned, if for a period of 7
procuring entity, if available and print the page calendar days?
c. any conspicuous place in (to form part of the audit b. the website of
the premises of the evidences). the procuring
procuring entity entity for a
for a period of 7 calendar
days
c. any
Guidelines for Shopping and Small conspicuous
Value Procurement covered by GPPB place in the
Resolution No. 09-2009, dated 23 premises of the
November 2009: procuring entity
for a period of 7
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the Answer
2. . . .

applicable:
i.
50,000.00) and below.

Quotations after the deadline indication of the lowest of the Procuring
Abstract of
the lowest quotation Abstract of Quotations with the
deadline for submission of Did the
Guidelines for Shopping and Small price quotations as indicated in procurement unit
Value Procurement covered by GPPB the RFQs. of the Procuring
Quotations after
1. . . . the deadline for
2. . . . submission of price
3. Procedural Guidelines quotations?

e. After the deadline for Did the
submission of price quotations, procurement unit
an Abstract of Quotations shall of the Procuring
be prepared setting forth the Entity determine
names of those who responded the lowest
to the RFQ, their corresponding quotation?
price quotations, and the lowest

entity made the award of contractor with the lowest entity award the
Abstract of Quotation with the lowest quotation
name of contractor who was which complied
awarded the contract. with the
stated in the RFQ 8. From the documentation of other terms and
the evaluation of price conditions stated in
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the Answer
Guidelines for Shopping and Small quotations conducted by the the RFQ?
Value Procurement covered by GPPB procuring entity, look for the
Resolution No. 09-2009, dated 23 verification on the compliance
November 2009: with the specifications and
other terms and conditions
1. . . . stated in the RFQ.
2. . . .

for infrastructure projects which
complies with the specifications
and other terms and conditions
stated in the RFQ.
6. For procurement with and 9. Ahead of the procurement, Did the procuring
ABC of more than Php request the procuring entity entity post the
50,000.00, To verify if the for advance information on the award in:
a. the PhilGEPS?
award in:
available where the award was posted
Guidelines for Shopping and Small on the schedule of posting. the procuring
Value Procurement covered by GPPB entity?
November 2009:
1. . . .
2. . . .


appropriate audit
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the Answer
the contract;
c. etc.
NOTE:
invited in writing.

appropriate audit
recommendations.

of non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
Other criteria:
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NON-GOVERNMENTAL
ORGANIZATIONS (NGO)
PARTICIPATION
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NGO PARTICIPATION

NGO Participation When an appropriation law or ordinance earmarks an amount to be

specifically contracted out to Non-Governmental Organizations (NGOs), the procuring entity may
enter into a Memorandum of Agreement with an NGO, subject to guidelines to be issued by the
GPPB.
NOTE:
No Audit Guide has been developed for this method of procurement

since no guidelines has yet been issued by the GPPB.
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CONSULTING SERVICES
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Commission on Audit
PROCUREMENT OF CONSULTING SERVICES
I. PREPARATORY ACTIVITY: BIDDING DOCUMENTS
A. AUDIT OBJECTIVE:
To verify if the Bidding Documents for the specific procurement followed the standard
forms and manuals prescribed by the Government Procurement Policy Board (GPPB)

1. The procuring entitys Customized Bidding Documents for Consulting Services;

the Answer
procurement include the forms Documents and the results Information
and information/contents
indicated in the Philippine
these are compliant with a. Approved
Bidding Documents for the the Philippine Bidding Budget for the
Procurement of Consulting Documents for the Contract?
Services issued by the GPPB: Procurement of Consulting
a. Approved Budget for the Services, 3rd Edition b. Request for
Contract (October 2009) issued by Expression of
b. Request for Expression of the GPPB, secure from the Interest?
Interest, BAC Secretariat duly
c. Eligibility Documents, certified copies of the c. Eligibility
d. Eligibility Data Sheet, Bidding Documents for Requirements?
e. Instructions to Bidders, specific procurements and
f. Bid Data Sheet, compare these with the d. Instruction to
g. General Conditions of customized Bidding Bidders,
Documents of the procuring including
Contract,
entity. - scope of bid?
h. Special Conditions of
Contract,
If the customized Bidding - documents
i. Technical Proposal Standard Documents are not comprising the
Forms, compliant, compare the bid?
j. Financial Proposal Standard procurement-specific
Forms, Bidding Documents with the - criteria for
k. Terms of Reference (TOR), Philippine Bidding eligibility?
l. Appendices Documents for the
Implementing Rules and Regulations Procurement of Consulting - bid
(IRR) of RA 9184, as amended on Services, 3rd Edition evaluation/
September 2, 2009: (October 2009) issued by methodology/
17.1. The Bidding Documents shall the GPPB using the audit criteria?
be prepared by the procuring entity matrix for the Element
following the standard forms and Customized Bidding - post-
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the Answer
manuals prescribed by the GPPB. Documents for Consulting qualification
17.1. The Bidding Documents Services. methodology?
shall include the following:
a) Approved Budget for the - date of the
Contract (ABC); pre-bid
b) Request for Expression of conference, if
Interest; applicable?
c) Eligibility Documents/
Requirements; - time of the pre-
d) Eligibility Data Sheet; bid conference,
e) Instructions to Bidders, if applicable?
including documents comprising
the bid, criteria for eligibility, bid - Place of the
evaluation methodology pre-bid
(Quality-Based or Quality-Cost conference, if
Based)/criteria, and post- applicable?
qualification, as well as the
date, time and place of the pre- - Deadline for
bid conference (where submission of
applicable), submission of bids bids?
and opening of bids;
f) Bid Data Sheet; - Place of
g) Terms of Reference; submission of
h) Scope of Services; bids?
i) Form of Bid (Technical and
Financial Proposal Forms); - Date of
j) Completion Schedule; opening of
k) Form, Amount, and Validity bids?
l) Form, Amount, and Validity of - Time of
Performance Security; and opening of
m) Form of Contract and General bids?
Contract - Place of
opening of
bids?
e. Terms of
Reference?
f. Form of Bid?
g. Completion
Schedule?
h. Form, Amount,
and Validity
Period of Bid
Security?
i. Form, Amount,
and Validity of
Performance
Security?
j. Form of
Contract,
General and
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Commission on Audit
the Answer
Special
Conditions of
Contract?
Are the Bidding

Documents in the
required form:
a. Request for
Expression of
Interest?
b. Instructions to
Bidders?
c. Bid Data Sheet?
d. General
Conditions of
the Contract?
e. Special
Conditions of
Contract?
f. Terms of
Reference?
g. Bidding Forms?
h. Appendices?

appropriate audit
be made on the basis of the compliance.
contract;
c. etc.
NOTE:
recommendations
Also refer to the
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the Answer
writing.

recommendations
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

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II. PREPARATORY ACTIVITY: PRE-PROCUREMENT CONFERENCE
(For procurement of consulting service costing more than P1 million)
specifications, the Approved Budget for the Contract (ABC), the applicability and appropriateness of the
recommended method of procurement and the related milestones, the bidding documents, and
availability of the pertinent budget release for the project.
2. To verify if the participants to the Conference are as required;
3. To verify if during the Conference the participants, led by the Bids and Awards Committee
(BAC), performed the required tasks and attained the objectives of the Conference.

1. copy of the Minutes of Pre-Procurement Conference duly certified by the BAC Secretariat;
2. Request for Expression of Interest;
participants to the Pre-Procurement Conference, including duly certified copies of the notices
issued with evidence of receipt by the participants.

Audit Activities
the Answer
1. To verify if the Pre- 1. Secure from the BAC Was the Pre-
Procurement Conference was Secretariat a duly certified Procurement
conducted prior to the copy of the Minutes of Conference
advertisement or the issuance Pre-Procurement conducted prior to
Conference and compare the issuance of the
of the Request for Expression the date the conference Request for
of Interest was held with the date Expression of
indicated in the Request Interest?
Implementing Rules and Regulations for Expression of Interest
(IRR) of RA 9184, as amended on (included in the Bidding
September 2, 2009: Documents)

the issuance of the Request for
Expression of Interest for each
procurement undertaken through
to the Pre-Procurement Secretariat duly certified the Conference
Conference included the BAC, copies of the documents include the:
(Office Orders, contracts,
Organizational/Functional a. BAC?
officials, including consultants Charts, etc) which it used
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Audit Activities
the Answer
hired by the procuring entity, as bases for identifying
who prepared the Bidding and notifying the b. Secretariat?
Documents and the draft participants to the Pre-
Procurement Conference,
Request for Expression of
including duly certified c. unit or officials who
Interest copies of the notices prepared the
issued with evidence of Bidding
Implementing Rules and Regulations receipt by the participants Documents and
(IRR) of RA 9184, as amended on the draft Request
September 2, 2009: for Expression of
20.1. The pre-procurement 3. From the Minutes of Interest?
conference shall be attended by the Pre-Procurement
BAC, the Secretariat, the unit or Conference look for the
officials, including consultants hired names of the members of d. consultants hired
by the procuring entity, who the BAC, the members of by the procuring
prepared the Bidding Documents the Secretariat, the entity, who
and the draft Request for Expression officials and/or prepared the
of Interest, for each procurement. consultants who prepared Bidding
the Bidding Documents Documents and
and the draft Request for the draft Request
Expression of Interest for Expression of
Interest?
of the contract, the ABC, a. Description of the
objectives: and contract duration, the scope of the
information and confirmed the the conclusions reached
description of the scope of the as a result of the
contract, the ABC, and deliberation; and analyze b. ABC?
contract duration; if they led to the
b. Discussed relevant confirmation of the
description of the scope of c. Contract duration?
the contract, the ABC, and
that the procurement is in the contract duration
procurement plan (APP);
c. Discussed relevant
information and confirmed the
availability of appropriations
and programmed budget for 5. From the Minutes of Did the participants
contract; Pre-Procurement led by the BAC
d. Discussed relevant Conference look for discuss and confirm
information and confirmed the information on the that the:
completeness of the Bidding presentation of the review
of the PPMP and APP,
Documents and their
availability of a. procurement is in
adherence to relevant general appropriations and accordance with
procurement guidelines; programmed budget for the PPMP and
e. Reviewed, modified and the contract, the APP?
agreed on the criteria for deliberation thereon, and
eligibility screening, criteria the conclusions reached
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Audit Activities
the Answer
for short listing, minimum as a result of the b. appropriations
score for short listing, number deliberation; and analyze and programmed
of short listed consultants, if they led to the budget for the
confirmation of the contract are
criteria for bid evaluation and
procurement is in available?
post-qualification; accordance with the PPMP
f. Reviewed and adopted the and APP, and availability
procurement schedule, of appropriations and
including deadlines and programmed budget for
timeframes, for the different the contract.
activities; and
g. Reiterated and
emphasized the importance of 6. From the Minutes of Did the participants
confidentiality and the Pre-Procurement led by the BAC
applicable sanctions and
information on the the following:
penalties, as well as agreed on presentation of the
measures to ensure Bidding Documents, the
compliance with the foregoing. deliberation thereon, and a. completeness of
the conclusions reached the Bidding
Implementing Rules and Regulations as a result of the Documents?
(IRR) of RA 9184, as amended on deliberation; and analyze
September 2, 2009: if they led to the
confirmation of the b. adherence to the
20.1. During the conference, the completeness of the Philippine Bidding
participants, led by the BAC, shall: Bidding Documents and Documents
a) Confirm the description and their adherence to the (PBDs)/
scope of the contract, the ABC, Philippine Bidding customized
and contract duration; Documents (PBDs)/ Bidding
b) Ensure that the procurement is customized Bidding Documents?
in accordance with the project Documents.
and annual procurement plans;
c) Determine the readiness of the 7. From the Minutes of Did the participants
procurement at hand, including, Pre-Procurement led by the BAC
among other aspects, the Conference look for discuss and confirm
following: information on the the:
i) availability of appropriations presentation of the criteria a. Criteria for
and programmed budget for for eligibility screening, Eligibility screening?
contract; bid evaluation, and post-
ii) completeness of the Bidding qualification, the a. Criteria for short
Documents and their adherence deliberation thereon, and listing?
to relevant general procurement the conclusions reached
guidelines; as a result of the b. Minimum score
iii) deliberation; and analyze for short listing?
d) Review, modify and agree on if they led to the
the criteria for eligibility confirmation of the criteria c. Number of short
screening, evaluation, and post- for eligibility screening, listed
qualification; criteria for short listing, consultants?
e) Review and adopt the minimum score for short
procurement schedule, including listing, number of short d. Criteria for Bid
deadlines and timeframes, for listed consultants, criteria evaluation?
the different activities; and for bid evaluation and
f) Reiterate and emphasize the post-qualification. e. Criteria Post-
importance of confidentiality qualification?
and the applicable sanctions
and penalties, as well as agree
on measures to ensure
compliance with the foregoing.
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24.5.2. 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. [AMENDED
PER ANNEX A OF GPPB 8. From the Minutes of Did the participants
RESOLUTION NO. 06-2009 DATED Pre-Procurement led by the BAC
30 SEPTEMBER 2009]. The number Conference look for discuss and confirm
of short listed consultants, which information on the the:
shall be determined in the pre- presentation of the
procurement conference, shall procurement schedule, a. adoption of the
consist of three (3) to seven (7) including deadlines and procurement
consultants, with five (5) as the timeframes for the schedule including
preferable number. Should less than different activities, the no- deadlines and
the required number apply for contact rule, the timeframes for the
eligibility and short listing, pass the deliberation thereon, and different activities?
eligibility check, and/or pass the the conclusions reached
minimum score required in the short as a result of the b. agreement on the
listing, the BAC shall consider the deliberation; and analyze no-contact rule?
same. if they led to the
confirmation of the
7.2. No procurement shall be adoption of the
undertaken unless it is in accordance procurement schedule
with the approved APP of the including deadlines and
procuring entity. The APP shall bear timeframes for the
the approval of the Head of the different activities and
Procuring Entity or second-ranking agreement on the no-
official designated by the Head of contact rule.
the Procuring Entity to act on his
behalf, and must be consistent with
its duly approved yearly budget.

January 2009:

figures.
amount allocated for the projects
they are to implement. On the
basis of said notification, the
heads of the respective IUs, as
procuring entities, can proceed
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award.
project, it is required that a Multi-
Year Obligational Authority
commencement of any
categories reflected in the MYOA
issued by DBP for the said MYP.
public funds shall be entered into
unless the proper accounting
shall have certified as to the
allotment to which the
expenditure or obligation may be
properly charged.
Definition:
3.1. Allotment - document issued
by the Department of Budget
and Management (DBM) which
amount as contained in a
legislated appropriation. The
allotment issued may either be
trough the Agency Budget
Matrix (ABM) which covers the

(APP) the requisite document
that the agency must prepare
to reflect the entire
procurement activity (i.e.,
goods, services, civil works to
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be procured) that it plans to
year. This document contains
the following information:
program/project;
3.2.2. Project management office
or end-user unit;
procurement;
adopted;
Contract.

following:
Section 2.1)
appropriated items as reflected in
the annual budget of the national
government agency, the amount
corresponding to either the full
cost of a single year or multi-year
program/project/ activity. For
multi-year projects, for which a
has been issued, the ABC shall be
the amount reflected in the Multi-
Section 2.2)

(CMIs) those itme in the budget
of agencies for which the
the National Expenditure Program
(NEP) or the General

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agencies in order to authorize the
latter to enter into multi-year
A MYOA, which contains an annual
breakdown of the full project cost,
obligates agencies to include in
their budget proposal for the
ensuring years the amount

Constitution. The NEP shall be the
basis of the general appropriations
bill, which upon its enactment,
becomes the General

be made on the basis of the non-compliance.
contract;
c. etc.
NOTE:
recommendations
Also refer to the
writing.

recommendations
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recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion

of the audit with the auditees audit/ validation document Audit Observation Memorandum (AOM), if applicable
Management reflecting the results of
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III. ADVERTISING AND POSTING OF THE
REQUEST FOR EXPRESSION OF INTEREST
(For consulting service contracts costing more than P1 million
or with duration of more than 4 months)
Advertising and posting are conducted to ensure transparency of the procurement process,
widest possible dissemination to increase the number of prospective bidders, and intensify competition
for the procurement activity or project
A. AUDIT OBJECTIVE:
To verify if the Request for Expression of Interest was advertised and posted in the media as
required and within the specified time

1. Entire page of the newspaper where the Request for Expression of Interest was advertised;
2. Document used by the BAC Secretariat to verify from the publisher the extent of circulation of
the newspaper and the first day of its publication;
3. Printout of the web page where the Request for Expression of Interest was posted in the
PhilGEPS website, the website of the procuring entity concerned, if available, and website
prescribed by the foreign government/ foreign or international financing institution, if
applicable for the first day and at least the last day of posting;
4. Certification by the head of the BAC Secretariat of the procuring entity that the Request for
Expression of Interest was posted at any conspicuous place reserved for the purpose in the
premises of the procuring entity for 7 calendar days.

the Answer
1. To verify if the BAC 1. Request the BAC Did the BAC advertise
advertised the Request for Secretariat to provide a copy the Request for
Expression of Interest in a of the entire page of the Expression of Interest
newspaper where the in a newspaper of
newspaper of general
Request for Expression of general nationwide
nationwide circulation which Interest was advertised, to circulation which has
has been regularly published be submitted to the Auditor been regularly
for at least 2 years before on the day of advertisement. published for at least
the date of issue of the 2 years before the
advertisement 2. From the verification date of issue of the
document obtained by the advertisement?
Implementing Rules and Regulations BAC Secretariat from the
(IRR) of RA 9184, as amended on publisher, check the extent
September 2, 2009: of circulation of the
newspaper and the first day
of publication.
the advertisement;
b.
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the Request for Expression procurement, request the Request for
of Interest continuously in BAC Secretariat for advance Expression of Interest
information on the first day continuously in the:
the PhilGEPS website, the
of any posting.
website of the procuring a. PhilGEPS website
entity concerned, if 4. On the first day of posting for 7 calendar
available, and the website access the PhilGEPS website, days starting on
prescribed by the foreign the website of the procuring the date of
government/foreign or entity concerned, if advertisement?
international financing available, and website
institution, if applicable, for prescribed by the foreign b. website of the
7 calendar days starting on government/ foreign or procuring entity
international financing concerned, if
the date of advertisement
institution, if applicable. available, for 7
Print the page where the calendar days
notice was posted (to form starting on the
part of the audit evidences). date of
September 2 2009:
advertisement?
5. Access the websites at
random during the 7-day c. website prescribed
period to verify the postings. by the foreign
government/
foreign or
international
financing
a
institution, if
applicable, for 7
calendar days
starting on the
date of
advertisement?
the Request for Expression procurement, request the Request for
of Interest continuously at BAC Secretariat for advance Expression of
any conspicuous place information on the first day Interest:
of any posting.
a. continuously for
the premises of the 7. Conduct ocular inspection seven (7)
procuring entity for 7 on the first day of posting. calendar days,
calendar days, as certified by
the head of the BAC 8. Repeat the ocular b. at the
Secretariat of the procuring inspections (may be at conspicuous
entity random) during the 7-day place reserved
period to verify the postings. for the purpose
Implementing Rules and Regulations in the premises
(IRR) of RA 9184, as amended on 9. Request for the of the procuring
September 3, 2009: certification of the head of entity,
the BAC Secretariat.
21.2.1. Except as otherwise c. as certified by
provided in Sections 21.2.2 and the head of the
54.2 of this IRR and for the BAC Secretariat
procurement of common-use of the procuring
entity?
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a.
b.
entity.

appropriate audit
contract; taken by the auditee in
the contract;
c. etc.
NOTE:
Also refer to the
OFFENSES AND
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
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Accounts
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IV. POSTING OF THE REQUEST FOR EXPRESSION OF INTEREST
(For consulting service contracts costing P1 million and below
or with duration of 4 months or less)
A. AUDIT OBJECTIVE:
To verify if the Request for Expression of Interest was posted in the media as required and within
the specified time

1. Printout of the web pages where the Request for Expression of Interest was posted in the
applicable for the first day and at least the last day of posting;
premises of the procuring entity for 7 calendar days.

the Answer
1. To verify if the BAC post 1. Ahead of any Did the BAC post the
the Request for Expression procurement, request Request for
of Interest continuously in the BAC Secretariat for Expression of Interest
advance information on continuously in the:
the PhilGEPS website, the
the first day of any
website of the procuring
posting. a. PhilGEPS website
entity concerned, if for 7 calendar
available, and the website 2. On the first day of days starting on
prescribed by the foreign posting access the the date of
government/foreign or PhilGEPS website, the advertisement?
international financing website of the procuring
institution, if applicable, for entity concerned, if b. website of the
7 calendar days starting on available, and website procuring entity
prescribed by the concerned, if
the date of advertisement
foreign government/ available, for 7
foreign or international calendar days
financing institution, if starting on the
applicable. Print the date of
September 2, 2009:
page where the notice advertisement?
21.2.2. Advertisement of the
was posted (to form
Request for Expression of Interest
part of the audit c. website
in a newspaper of general
evidences). prescribed by the
nationwide circulation provided in
foreign
Section 21.2.1 (a) shall not be
3. Access the websites government/
required for contracts to be bid
at random during the 7- foreign or
with an approved budget of
day period to verify the international
One Million Pesos (P1,000,000.00)
postings. financing
and below or those whose
institution, if
duration is four (4) months or less
applicable, for 7
for the procurement of consulting
calendar days
services.
starting on the
date of
advertisement?
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a
the Request for Expression procurement, request Request for
of Interest continuously at the BAC Secretariat for Expression of
any conspicuous place advance information on Interest:
reserved for the purpose in posting.
the premises of the a. continuously for
procuring entity for 7 seven (7) calendar
calendar days, as certified by 5. Conduct ocular days,
the head of the BAC inspection on the first
Secretariat of the procuring day of posting.
entity b. at the conspicuous
place reserved for
Implementing Rules and Regulations 6. Repeat the ocular the purpose in the
(IRR) of RA 9184, as amended on inspections (may be at premises of the
September 2, 2009: random) during the 7- procuring entity,
21.2.1. Except as otherwise day period to verify the
provided in Sections 21.2.2 and postings.
54.2 of this IRR and for the c. as certified by the
procurement of common-use head of the BAC
goods and supplies, the Request 7. Request for the Secretariat of the
for Expression of Interest shall be: certification of the head procuring entity?
a. of the BAC Secretariat
b.
for 7 calendar days, as certified by
the head of the BAC Secretariat of
the procuring entity.

develop appropriate
a. validity of the audit recommendations.
validity of the resulting appropriate actions
contract; were taken by the
b. validity of any payment to instances of non-
the contract;
c. etc.
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OFFENSES AND
PENALTIES
Guide.
invited in writing.

and develop appropriate establish the cause(s)
Also determine if
appropriate actions
were taken by the
instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
Guide.

results of the
COA Circular No. 2009-006 dated audit/validation and
September 15, 2009 re- transmit to
Prescribing the Use of the Rules Management
Accounts
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V. ISSUANCE OF ELIGIBILITY DOCUMENTS TO CONSULTANTS
The list of eligibility requirements/ documents must be made available from the first day of
advertising/ posting until the deadline for the eligibility check.
A. AUDIT OBJECTIVE:
To verify if the pertinent regulations on issuance of eligibility documents were followed

2. Entire page of the newspaper where the Request for Expression of Interest was advertised
(for consulting service contracts costing more than P1 million or with duration of more than 4
months), for the first day of advertising;
applicable, for the first day of posting;
4. Records of the BAC on issued eligibility requirements/ documents.

the Answer
observed the time required availability of the Eligibility the eligibility
in making the eligibility Documents indicated in the documents
documents available, that is, Request for Expression of available from the
Interest with the first day of time the Request
from the time the Request
its advertising/posting and for Expression of
for Expression was first the deadline for the Interest was first
advertised up to the deadline eligibility check. advertised/ posted
for the eligibility check up to the deadline
for the eligibility
Implementing Rules and Regulations check?
September 2, 2009:
17.3.
a)
b) For the procurement of
consulting services, eligibility
documents shall be made
available from the time the
is first advertised/posted until the
deadline for the eligibility check,

appropriate audit
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the contract;
c. etc.
NOTE:
Also refer to the
OFFENSES AND
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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VI. ELIGIBILITY CHECKING & SHORT LISTING OF CONSULTANTS
Eligibility Check is a procedure to determine if a prospective bidder is eligible to participate in

the bidding at hand.
The process of short listing determines the most qualified consultants from those eligible to
undertake the project.
1. To verify if all consultants that submitted Eligibility Documents were included in the Eligibility
Checking;
2. To verify if submission and opening of eligibility envelopes were made within the time as
required;
3. To verify if the BAC performed the eligibility checking as required;
4. To verify if the BAC performed the short listing as required;
5. To verify if the BAC notified the prospective bidders concerned of the results of the eligibility
checking and short listing as required.

1. Receiving Logbook of the BAC Secretariat showing information on the consultants that
submitted Eligibility Documents;
2. Minutes of Eligibility Checking;
4. Checklist of Eligibility Requirements of Consulting Services accomplished by the BAC;
5. TWG report on short listing as reviewed by the BAC;
6. Rating Sheet for Short Listing accomplished by the TWG/BAC;
7. Minutes of meeting(s) on short listing;
8. BAC Resolution on the Short Listing conducted, duly approved by the HOPE;

the Answer
ELIGIBILITY CHECKING / SCREENING OF CONSULTANTS
1. To verify if the BAC 1. From the Minutes of Did the BAC include
included all consultants that Eligibility Checking, compare all consultants that
submitted Eligibility the list of consultants submitted Eligibility
subjected to eligibility Documents in the
Documents in the Eligibility
checking with those that Eligibility Checking?
Checking submitted Eligibility
Documents per the
Implementing Rules and Regulations Receiving Logbook of the
(IRR) of RA 9184, as amended on BAC Secretariat.
September 2, 2009:
3. The procurement of the GOP
shall be governed by these
principles:

b) Competitiveness by
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extending equal opportunity to
enable private contracting
parties who are eligible and
qualified to participate in public
bidding.
2. To verify if the eligibility 2. From the Receiving Were the eligibility

envelopes were submitted Logbook, check the date and envelopes
on or before the deadline set time of submission and submitted on or
compare with the deadline before the deadline
in the Request for
set in the Request for set in the Request
Expression of Interest Expression of Interest. for Expression of
Interest?
September 2, 2009:
24.4.1. The eligibility envelopes
of prospective bidders for
procurement of consulting services
shall be submitted on or before
the deadline specified in the
Request for Expression of
Interest
3. To verify if the BAC 3. From the Minutes of Did the BAC open
opened the eligibility Eligibility Checking, compare the eligibility
envelopes before the dates the date of opening of envelopes:
eligibility envelopes with the
of the pre-bid conference
dates of the pre-bid a. before the date
and bid opening
conference and bid opening of the pre-bid
indicated in the Bidding conference?
Implementing Rules and Regulations Documents (Request for
(IRR) of RA 9184, as amended on Expression of Interest). b. before the date
September 2, 2009: of the bid
24.4.1. The eligibility envelopes opening?
of prospective bidders for
procurement of consulting services
shall be opened before the
dates of the pre-bid conference
and bid opening to determine
eligibility of prospective bidders
who shall then be allowed to
acquire or purchase the relevant
bidding documents from the
procuring entity.
4. To verify if the BAC: 4. From the Minutes of Did the BAC open
a. opened the eligibility Eligibility Checking, go over the eligibility
envelopes in public, and the list of those present if envelopes in
they included prospective public?
b. determined each
bidders and BAC Observers.
prospective bidders
compliance with the 5. Compare the list of Are the contents of
documents required to be documents required to be the Checklist of
submitted for eligibility submitted for eligibility per Eligibility
Bidding Documents and Requirements of
Implementing Rules and Regulations those in the Checklist of Consulting Services
(IRR) of RA 9184, as amended on required documents used those that are
September 2, 2009: during the eligibility required for
30.1. For the purpose the BAC checking. eligibility per
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shall check the submitted Bidding
documents of each bidder against Documents?
a checklist of required documents
to ascertain if they are all present 6. Validate the entries in Did the BAC
using a non-discretionary the Checklist with the determine each
pass/fail criterion as stated in eligibility documents of the prospective bidders
the Instructions to Bidders. If the prospective bidders (for compliance with
bidder submits the required the presence or absence). the documents
required documents, it shall be required to be
rated passed for that particular submitted for
requirement. eligibility?
24.4.2. Subject to the short listing 7. From the Minutes of Did the BAC declare
of consultants as provided in this Eligibility checking if those as eligible only
IRR, the determination of eligibility consultants declared eligible those consultants
of consultants shall be based on were those that passed all that passed all the
the evaluation of the eligibility the eligibility criteria. eligibility criteria?
documents prescribed above in
accordance with the procedures
IRR.
24.1. The following documents

shall be submitted, using the
forms prescribed by the BAC in
the Bidding Documents for
purposes of determining eligibility
and short listing of prospective
bidders in accordance with
Sections 24.4 and 24.5 of this
IRR:
Legal Documents-
i) Registration certificate from
SEC for partnerships and
corporations or Registration
certificate from Department
of Trade and Industry (DTI)
for sole proprietorship or CDA
for cooperatives, or any proof
of such registration
located;
Technical Documents-
started, if any, whether
similar or not similar in nature
and complexity to the
contract to be bid, within the
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relevant period as provided
for in the Bidding Documents.
iv) Statement of the consultant
specifying its nationality and
confirming that those who will
actually perform the service are
registered professionals
authorized by the appropriate
regulatory body to practice
those professions and allied
professions, including their
respective curriculum vitae. [AS
AMENDED BY GPPB
RESOLUTION NO. 11-2009
DATED 30 NOVEMBER 2009]
Financial Documents-
v) The consultants audited
financial statements, showing,
among others, the consultants
total and current assets and
liabilities, stamped received by
the BIR or its duly accredited
and authorized institutions, for
the preceding calendar year
which should not be earlier than
two (2) years from the date of
bid submission.
b) Class B Documents
vi) Valid Joint Venture
Agreement (JVA), in case of a
joint venture is already in
existence. In the absence of a
JVA, duly notarized statements
from all the potential joint
venture partners stating that
they will enter into and abide by
the provisions of the JVA in the
instance that the bid is
successful, shall be included in
the bid.
5. To verify if the BAC 8. Based on the Minutes of Did the BAC issue
informed consultants Eligibility Screening and Notices of
subjected to eligibility copies of Notices of Ineligibility and
Eligibility & Notices of Notices of
screening of the results
Ineligibility, check if: Eligibility:
thereof
a. all the consultants
subjected to Eligibility a. to all the
Screening were notified consultants
of the results, subjected to
September 2, 2009:
b. the Notices were signed Eligibility
by members of the BAC Screening?
6.2. Once issued by the GPPB,
present,
c. the reason for ineligibility b. that were signed
was stated in the Notice, by members of
d. the Notices were duly the BAC
received by the present?
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shall be mandatory upon all prospective bidders.
Procuring Entities. However, c. that stated the
whenever necessary, to suit the reason(s) for
particular needs of the procuring ineligibility?
made, particularly for major and d. were duly
specialized procurement, subject received by the
to the approval of the GPPB. prospective
bidders or
Generic Procurement Manual for authorized
Consulting Services Vol. 4, June representative?
2006 published by the GPPB:
How is an eligibility check

conducted?
1.
2. The BAC shall declare
prospective bidders as either
eligible or ineligible, based on
the findings in Item 1 above, and
inform them accordingly. The
Eligibility envelopes shall likewise
be marked as such, and these
markings shall be countersigned
by the BAC chairperson or his duly
designated authority. The BAC
shall prepare a pro-forma Notice
of Eligibility and a Notice of
Ineligibility which will be duly
accomplished by the BAC
Secretariat and signed by the BAC
members present during the
Eligibility Checking/Screening. In
case a prospective bidder is
declared ineligible, the Notice of
Ineligibility shall state the reason
for such ineligibility. The Notice
will be received officially by the
bidders authorized representative.
SHORT LISTING OF CONSULTANTS

6. To verify if the BAC 9. From the Minutes of Did the BAC
considered for short listing Eligibility Checking, compare consider for short
only those consultants who the list of eligible listing only those
consultants with those consultants who
have been determined as
considered for short listing have been
eligible
per Rating Sheet for Short determined as
Listing. eligible?
September 2, 2009:
24.5.2. 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.
Per Sample Forms for the

Procurement of Consulting Services
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published by the GPPB the required
form is SF-CONS-30: Rating Sheet
for Short Listing
7. To verify if the BAC 10. From the Bidding Did the BAC subject
subjected to short listing Documents identify the to short listing only
only those whose contracts definition of contract that those consultants
is similar in nature and whose contracts, as
are similar in nature and
complexity. identified in the
complexity to the contract to
eligibility
be bid based on the Request 11. From the relevant documents
for Expression of Interest report(s) of the Technical submitted for
Working Group with registration, are
supporting documents and similar in nature
duly reviewed by the BAC, and complexity to
September 2, 2009:
Minutes of Meeting(s) of the the contract to be
BAC, look for information on bid, based on the
24.5.1. With respect to a
the evaluation (comparison) Request for
particular contract for consulting
of similar contracts of Expression of
services to be bid, the concerned
consultants subjected to Interest?
procuring entity shall only consider
short listing.
for short listing those consultants
whose contracts, as identified in
the eligibility documents submitted
for registration, are similar in
nature and complexity to the
contract to be bid, based on the
Request for Expression of Interest.
(Note/Observation :
The Request for Expression of
Interest does not have a space
for this information)
24.1.
Legal Documents-
i)
ii)
Technical Documents-
started, if any, whether similar or
not similar in nature and
complexity to the contract to be
bid, within the relevant period as
provided for in the Bidding
Documents.
Philippine Bidding Documents for

Consulting Services 3rd Ed., October
2009, published by the GPPB:
Similar contract is as defined/
described in the Eligibility Data
Sheet.
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the Answer
8. To verify if the BAC 12. From the relevant Did the BAC use
conducted the short listing report(s) of the Technical the criteria and
based on the criteria and Working Group with rating system
supporting documents and specified in the
rating system for short
duly reviewed by the BAC, Request for
listing of consultants as and Minutes of Meeting(s) of Expression of
specified in the Request for the BAC, look for Interest and other
Expression of Interest and information on the relevant Bidding
other relevant Bidding evaluation conducted Documents and
Documents, which pertaining to short listing. these considered
considered the following, the following,
among others (NOTE: The 13. Compare the criteria among others:
recommended percentages are and rating system used with
those specified in the a. Applicable
as indicated in the Generic
Request for Expression of experience of the
Procurement Manual of
Interest and other relevant consultant and
Procedures for the Procurement Bidding Documents. members in case
of Consulting Services, June of joint ventures,
2006, published by the GPPB.): considering both
a. Applicable experience of the overall
the consultant and experiences of the
members in case of joint firm or, in the case
ventures, considering of new firms, the
individual
both the overall
experiences of the
experiences of the firm principal and key
or, in the case of new staff, including the
firms, the individual times when
experiences of the employed by other
principal and key staff, consultants =
including the times when 50%;
employed by other
consultants 50%; b. Qualification of
personnel who
b. Qualification of personnel
may be assigned
who may be assigned to
to the job vis--vis
the job vis--vis extent extent and
and complexity of the complexity of the
undertaking 30%; and undertaking =
c. Current workload relative 30%; and
to capacity 20%.
c. Current workload
Implementing Rules and Regulations relative to capacity
(IRR) of RA 9184, as amended on = 20%.
September 2, 2009:

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the Answer
24.5.3. 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 contract to be bid which
shall consider the following,
among others:
(NOTE: The recommended
percentages are as indicated in
the Generic Procurement Manual
of Procedures for the Procurement
of Consulting Services, June 2006,
published by the GPPB.):
a. Applicable experience of the
consultant and members in case
of joint ventures, considering
both the overall experiences of
the firm or, in the case of new
firms, the individual experiences
of the principal and key staff,
including the times when
employed by other consultants
50%;
b. Qualification of personnel who
may be assigned to the job vis-
-vis extent and complexity of
the undertaking 30%; and
c. Current workload relative to
capacity 20%.
9. To verify if the BAC: 14. Compare the minimum Did the BAC adopt
a. included in the short list score required for short the minimum score
only those consultants who listing agreed upon during for short listing
the pre-procurement agreed upon during
passed the minimum score
conference (from the the Pre-
required in the short Minutes of the Pre- Procurement
listing, and Procurement Conference) Conference?
b. the number of short listed with the one used by the
consultants was as BAC in the actual conduct of
determined in the pre- short listing (based on the
procurement conference, Rating Sheet for Short
and consisted of 3 to 7 Listing and the relevant
consultants with 5 as the Minutes of BAC Meetings).
preferable number; unless
15. Compare the ratings of Did the BAC short
the number of those who
the short listed consultants list only those
applied and were short with the minimum score. consultants that
listed is less than the passed the
required minimum score for
inclusion in the
Implementing Rules and Regulations short list?
September 2, 2009:
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the Answer
24.5.2. The number of short 16. Compare the number of Did the BAC adopt
listed consultants which shall be short listed consultants with the number of
determined in the pre- the number agreed upon short list agreed
procurement conference shall during the Pre-Bid upon during the
consist of 3 to 7 consultants with Conference. Pre-Procurement
5 as the preferable number. Conference (unless
the number of
24.5.2. Should less than the consultants who
required number apply for submitted eligibility
eligibility and short listing pass the documents and
eligibility check, or pass the were declared
minimum score required in the eligible and short
short listing, the BAC shall listed is less)?
consider the same.
10. To verify if the HOPE 17. Check for the HOPEs Did the HOPE
approved the short list of approval of the BACs approve the short
consultants based on the Resolution declaring the list of consultants
short listed consultants and recommended by
BACs recommendation
recommending the shortlist the BAC?
for approval.
September 2, 2009:
24.5.4. The BAC shall
recommend the short list of
consultants to the Head of the
Procuring Entity for
consideration and approval.
11. To verify if the BAC 18. Compare the names of Did the BAC notify
notified the short listed the short listed consultants the short listed
consultants of the results of as approved by the HOPE consultants of the
with those in the Notices results of the short
the short listing process
issued by the BAC, and duly listing process?
received by the consultants
concerned.
September 2, 2009:

Generic Procurement Manual of

Procedures for the Procurement of
Consulting Services, June 2006,
published by the GPPB.):
If the Head of the Procuring Entity
approves the recommendation,
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the Answer
inform the short listed consultants
about the results of the short
listing process.
12. To verify if the procuring 19. Compute the number of Did the procuring
entity completed the process days from the opening of entity complete the
of eligibility check and short the eligibility envelopes to process of eligibility
the approval by the HOPE of check and short
listing in 20 calendar days
the BAC Resolution listing in 20
recommending the short list calendar days?
of consultants and compare
with the 20-day period.
September 2, 2009:
24.5.4. The entire process of
eligibility check and short listing
shall not exceed twenty (20)
calendar days.
project-related professional from the pool, check for
organization accredited or information on the BACs a. One
duly recognized by the evaluation in regard to: representing the
Professional Regulation the selection of the COA?
Commission or the Supreme organization from which
Court, and a non-government the Observer will be b. One
organization (NGO) from the invited; representing the
procuring entitys Pool of knowledge, experience or project-related
Observers; expertise in procurement professional
or in the subject matter organization
b. that have:
of the contract to be bid; accredited or
no actual or potential duly recognized
or expertise in
conflict of interest in the by the
procurement or in the
contract to be bid; and Professional
conformed with other Regulation
contract to be bid;
relevant criteria Commission or
b.2. no actual or potential determined by the BAC. the Supreme
conflict of interest in the Court?
b.3. conformed with other c. One
relevant criteria representing a
determined by the BAC; non-government
c. at least 3 calendar days prior organization?
to the pre-bid conference
d. With knowledge,
Implementing Rules and Regulations experience or
(IRR) of RA 9184, as amended on expertise in
September 2, 2009: procurement or
in the subject
matter of the
contract to be
bid?
stages of the
e. With no actual
or potential
conflict of
shall not have the right to vote, to
interest in the
sit in its proceedings where:
contract to be
bid?
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the Answer
procurement at hand, for example: f. Conformed with
i) other relevant
ii) criteria
iii) For consulting services, a determined by
project-related professional the BAC?
organization accredited or duly
recognized by the Professional
Regulation Commission or the 21. From certified copies of Did the BAC invite
Supreme Court, such as, but not the invitations to the the Observers at
limited to: Observers with evidence of least 3 days from
(1) PICE; receipt, compare the date of the date of the pre-
(2) Philippine Institute of receipt with the 3-day bid conference?
Certified Public Accountants minimum requirement.
(PICPA); and
Consulting Organizations; and
organization (NGO).

the Securities and Exchange
Commission (SEC) or the
(CDA), and should meet the
following criteria:
be bid;
to be bid; and

Entity considered the Minutes on the Post Entity consider the
comments/observations of Qualification and the report comments/
the Observers
observers.
September 2, 2009:
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the Answer
proceedings;
procedure; and
to be bid.

opened proposals.

appropriate audit
the contract;
c. etc.
NOTE:
Also refer to the
OFFENSES AND
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the Answer
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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Commission on Audit
VII. ISSUANCE OF BIDDING DOCUMENTS
TO SHORT LISTED CONSULTANTS
The bidding documents must be made available from the determination of the short list until the
deadline for the submission and receipt of bids.
A. AUDIT OBJECTIVE:
To determine whether the prescribed procedures and timelines in the issuance of bidding
documents were followed

applicable for the first day of posting;

the Answer
1. To verify if the BAC 1. Based on the approved Did the BAC make
observed the time required BAC Resolution on the short the bidding
in making the Bidding listed consultants and the documents
Request for Expression of available from the
Documents available, that is,
Interest, establish the period time of the
from the time of the (dates) from the short listing determination of
determination of the short to the deadline for the the short list until
list until the deadline for the submission and receipt of the deadline for the
submission and receipt of bids. submission and
bids Compare these dates with receipt of bids?
the dates of actual posting
Implementing Rules and Regulations of the bidding documents at
(IRR) of RA 9184, as amended on the PhilGEPS and the
September 2, 2009: procuring entitys websites.
their respective bids, the
concerned BAC shall make the
Bidding Documents for the
contract to be bid available for the
following period:
a)
b) For the procurement of
consulting services, the Bidding
Documents, from the
determination of the short list until
and receipt of bids.
17.5. Prospective bidders
Documents from any of the
said websites; Provided that,
bidders shall pay the fee for
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the Answer
the Bidding Documents upon
the Bidding Documents at procurement, request the the Bidding
the website of the procuring BAC Secretariat for advance Documents at the:
of any posting of Bidding e. PhilGEPS
website from the time that
Documents. website starting
the Request for Expression on the first day
of Interest was advertised 3. On the first day of posting of
up to the deadline for the access the PhilGEPS website, advertisement
submission and receipt of the website of the procuring
bids entity concerned, if f. website of the
available. procuring entity
Implementing Rules and Regulations concerned, if
(IRR) of RA 9184, as amended on Print the page where the available,
September 2, 2009: notice was posted (to form starting on the
Section 17.5 The procuring part of the audit evidences). first day of
entity shall also post the Bidding advertisement
Documents at its website and at 4. Access the websites at
the PhilGEPS website from the random from the first day of
time that the Request for posting up to the deadline
Expression of Interest is for the submission and
advertised. Prospective Bidders receipt of bids to verify the
may download the Bidding postings.
Documents upon submission of
their Bids.
3. To verify if all bidders 5. Compare the records of Did all the bidders
that secured Bidding the BAC Secretariat on who submitted bids
Documents paid to the issued bidding documents pay the correct
(with information on Official amount for the
authorized collecting officer
Receipt numbers) for the bidding documents
subject consulting services to the authorized
with copies of Official collecting officer of
Implementing Rules and Regulations Receipts (ORs) issued by the procuring
(IRR) of RA 9184, as amended on authorized collecting officers entity?
September 2, 2009: for the sale of bidding
17.4. Bidders may be asked to documents.
pay for the Bidding documents to
recover the cost of its preparation 6. After submission of bids,
and development. The BAC shall for bidders that downloaded
issue the Bidding Documents upon bidding documents, compare
payment of the corresponding cost the OR numbers indicated in
thereof to the collecting/ disbursing the records of the BAC
officer of the procuring entity Secretariat with copies of
concerned. the ORs or Report of
Collection of authorized
17.5. Prospective bidders collecting officers.
Documents upon submission of their
bids.
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the Answer
appropriate audit
the contract;
c. etc.
NOTE:
Also refer to the
OFFENSES AND
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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Commission on Audit
VIII. PRE-BID CONFERENCE
(For procurement of consulting services costing P1 million or more)
The pre-bid conference is the initial forum where the Procuring Entitys representatives and the
prospective bidders discuss the different aspects of the procurement at hand.
A pre-bid conference must be held for contracts with ABCs of at least One Million Pesos (P 1
Million). For contracts with ABCs of less than P 1 million, pre-bid conferences may or may not be held
at the discretion of the BAC. The BAC may also decide to hold a pre-bid conference upon the written
request of a prospective bidder.
1. To verify if the Pre-Bid Conference was conducted within the required time;
2. To verify if the attendees to the Conference are as required;
3. To verify if the participants, led by the BAC, performed the required tasks and attained the
objectives of the Conference.

1. Minutes of Pre-Bid Conference approved by the BAC;
4. Invitation Letters to observers and the documents (Office Orders, contracts,
Organizational/Functional Charts, List of observers, etc) which it used as bases for identifying
and notifying the participants to the Pre-Bid Conference, including duly certified copies of the
letters / notices issued with evidence of receipt by the participants;

the Answer
1. To verify if the Pre-Bid 1. Secure from the BAC Did the BAC conduct
Conference was conducted Secretariat a duly certified the pre-bid
by the BAC at least twelve copy of the Minutes of Pre- conference at least
(12) calendar days before Bid Conference and compare twelve (12) calendar
the date of the Conference days before the
the deadline for the
with the deadline for the deadline for the
submission and receipt of submission of and receipt of submission and
bids or thirty (30) calendar bids. receipt of bids?
days, if a longer period is
necessary
September 2, 2009:
22.2. The pre-bid conference shall
be held at least twelve (12)
bids. If the procuring entity
determines that, by reason of the
method, nature, or complexity of
the contract to be bid or when
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the Answer
international participation will be
more advantageous to the GOP, a
longer period for the preparation
of bids is necessary, the pre-bid
conference shall be held at least
thirty (30) calendar days before
and receipt of bids.
2. To verify if during the Pre- 2. From the Minutes of Pre- Did the participants
Bid Conference the Bid Conference look for during the Pre-Bid
participants, led by the BAC, information on the Conference led by the
presentation of the technical BAC, discuss relevant
discussed relevant
and financial components of information and
the contract to be bid, the confirmed the
the technical and financial deliberation thereon, and technical and financial
components of the contract the conclusions reached as a components of the
to be bid. result of the deliberation; contract to be bid?
and analyze if they led to
the confirmation of the
technical and financial
September 2, 2009:
components of the contract
22.3. The pre-bid conference shall to be bid.
discuss, among other things, the
eligibility requirements and the
technical and financial
components of the contract to be
bid. Attendance of the bidders
shall not be mandatory. However,
at the option of the procuring
entity, only those who have
purchased the Bidding Documents
shall be allowed to participate in
the pre-bid conference and raise
or submit written queries or
clarifications. [AS AMENDED BY
GPPB RESOLUTION NO. 06-2009
DATED 30 SEPT 2009]
3. To verify if the BAC 3. Count the number of Did the BAC

Secretariat prepared the days from the date of the Secretariat prepare
Minutes of the Conference pre-bid conference and the the Minutes of Pre-
date of approval of the Bid Conference and
and made it available to the
Minutes of Pre-Bid made it available to
participants not later than
Conference and compare the participants not
three (3) calendar days after with the 3-day maximum later than three (3)
the conference period. calendar days after
the Pre-Bid
Implementing Rules and Regulations Conference?
September 2, 2009:
22.4 The minutes of the pre-bid
conference shall be recorded and
made available to all participants
not later than three (3) calendar
days after the pre-bid conference.
from the pool, check for
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the Answer
project-related professional information on the BACs a. One representing
organization accredited or evaluation in regard to: the COA?
duly recognized by the the selection of the
Professional Regulation organization from which b. One representing
Commission or the Supreme the Observer will be the project-related
Court, and a non-government invited; professional
organization (NGO) from the knowledge, experience or organization
procuring entitys Pool of expertise in procurement accredited or duly
Observers; or in the subject matter recognized by the
b. that have: of the contract to be bid; Professional
b.1. knowledge, experience no actual or potential Regulation
or expertise in conflict of interest in the Commission or the
procurement or in the contract to be bid; and Supreme Court?
subject matter of the conformed with other
contract to be bid; relevant criteria c. One representing
b.2. no actual or potential determined by the BAC. a non-government
conflict of interest in the organization?
d. With knowledge,
experience or
relevant criteria
expertise in
determined by the BAC;
procurement or in
c. at least 3 calendar days prior
the subject matter
to the pre-bid conference
of the contract to
be bid?
(IRR) of RA 9184, as amended on e. With no actual or
September 2, 2009: potential conflict
Section 13. Observers of interest in the
13.1. To enhance the transparency contract to be bid?
stages of the f. Conformed with
procurement process, invite, in other relevant
addition to the representative of the criteria determined
COA, at least two (2) observers, who by the BAC?
sit in its proceedings where:
a) At least one (1) shall come from a 5. From certified copies of Did the BAC invite the
duly recognized private group in a the invitations to the Observers at least 3
sector or discipline relevant to the Observers with evidence of days from the date of
procurement at hand, for example: receipt, compare the date of the pre-bid
i) receipt with the 3-day conference?
ii) minimum requirement.
Regulation Commission or the
Supreme Court, such as, but not
limited to:
(1) PICE;
Certified Public Accountants
(PICPA); and
organization (NGO).
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the Answer
following criteria:
be bid;
to be bid; and


Entity considered the Minutes on the pre-bid Entity consider the
comments/observations of conference and the report of comments/
the Observers check observations of the
the Observers
observers.
September 2, 2009:
proceedings;
procedure; and
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Commission on Audit
the Answer
to be bid.

opened proposals.

appropriate audit
the contract;
c. etc.
NOTE:
Also refer to the
OFFENSES AND
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
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Commission on Audit
the Answer
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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Commission on Audit
IX. SUPPLEMENTAL / BID BULLETINS
FOR THE PROCUREMENT OF CONSULTING SERVICES
clarifying or modifying any provision of the Bidding Documents at least seven (7) calendar days before
the deadline for the submission and receipt of bids. Any modification to the Bidding Documents shall be
identified as an amendment.
A. AUDIT OBJECTIVE:

3. Copies of Requests for Clarification submitted by bidders with evidence of receipt by the BAC
Secretariat;
5. Printout of the procuring entitys web page evidencing posting of the Supplemental/Bid Bulletin.

the Answer
Supplemental/Bid Bulletins in the Pre-Bid Conference Supplemental/Bid
regard to statements made at and check for Bulletins in regard to
statements that could statements made at the
the pre-bid conference that
modify the terms of pre-bid conference that
could modify the terms of the
the Bidding could modify the terms
Bidding Documents Documents. of the Bidding
Documents to all
Implementing Rules and Regulations 2. Obtain a copy of the bidders that properly
(IRR) of RA 9184, as amended on related Supplemental / secured Bidding
September 2, 2009: Bid Bulletin and check Documents?
22.4. Any for the signature of the
statement made at the pre-bid BAC Chairman.
conference shall not modify the terms
of the Bidding Documents, unless 3. From certified copies of Did the BAC Chairman
such statement is specifically the letters to bidders sign the Supplemental /
identified in writing as an amendment who purchased the Bid Bulletin?
thereto and issued as a Bidding Documents,
Supplemental/ Bid Bulletin. look for evidences of
their receipt of the
22.5.1. The BAC shall respond to Supplemental/Bid
the said request by issuing a Bulletins.
made available to all those who have
properly secured the Bidding
calendar days before the deadline for
the submission and receipt of bids.
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the Answer
a. requests for Requests for Clarification Clarification submitted
clarification(s) on any and check (date of at least ten (10)
receipt stamped on the calendar days before
part of the Bidding
letters) whether these the deadline set for the
Documents or for an were submitted at least submission and receipt
interpretation were in ten (10) calendar days of bids?
writing and submitted before the deadline set
to the BAC of the for the submission and
procuring entity at receipt of bids.
least ten (10) calendar
days before the
deadline set for the
submission and 4. Obtain duly certified Did the BAC Chairman
receipt of bids; copies of sign the Supplemental /
Supplemental/Bid Bid Bulletin?
b. the Supplemental/ Bid Bulletins and check for
Bulletin was duly the signature of the BAC
signed by the BAC Chairman.
Chairman;
c. the Supplemental/ Bid 5. From the records of the Did the BAC issue
Bulletin was issued at BAC (copies of Supplemental/ Bid
least seven (7) Supplemental/Bid Bulletins at least seven
calendar days before Bulletins with evidence of (7) calendar days
the deadline for the the date of issuance) before the deadline for
submission and count the number of the submission and
receipt of bid. days from said issuance receipt of bid?
and the deadline for the
Implementing Rules and Regulations submission and receipt of
(IRR) of RA 9184, as amended on bids; compare with the 7-
September 2, 2009: day requirement.
22.5.1 Requests for clarification(s)
on any part of the Bidding
Documents or for an interpretation
must be in writing and submitted
to the BAC of the procuring entity
bids.
3. To verify if: 6. From the records of the Did the BAC issue
BAC (copies of Supplemental/ Bid
a. Supplemental/Bid Bulletins Supplemental/Bid Bulletins at
initiated by the procuring Bulletins with evidence of least seven (7) calendar
entity for purposes of the date of issuance) days before the
clarifying or modifying any count the number of deadline for the
provision of the Bidding days from said issuance submission and receipt
and the deadline for the of bid?
Documents were issued at
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the Answer
least seven (7) calendar bids; compare with the 7-
days before the deadline day requirement.
receipt of bids; 7. Go through the Did the BAC identify
contents of modifications to the
b. Modifications to the Supplemental/Bid Bidding Documents as
Bidding Documents were Bulletins and check if amendments?
amendments were
identified as amendments;
identified as such.
c. the Supplemental/ Bid

Bulletin was duly signed by
the BAC Chairman 8. Go through the Did the BAC Chairman
Supplemental/Bid sign the Supplemental /
Implementing Rules and Regulations Bulletins and check for Bid Bulletin?
(IRR) of RA 9184, as amended on the signature of the BAC
September 2, 2009: Chairman.
22.5.1. issuing a
signed by the BAC Chairman
22.5.2 Supplemental/Bid Bulletins

may be issued upon the procuring
entitys initiative for purposes of
clarifying or modifying any
provision of the Bidding Documents
amendment.
4. To verify if the BAC posted 9. In advance of the Did the BAC post
Supplemental/Bid Bulletins it posting, request the BAC Supplemental/Bid
issued on the PhilGEPS and Secretariat for print-outs Bulletins:
(printed on the day of the
the website of the procuring
posting) of Supplemental/ a. on the PhilGEPS?
entity concerned, if available
Bid Bulletins as posted on
the PhilGEPS and at their and
Implementing Rules and Regulations website.
(IRR) of RA 9184, as amended on b. the website of the
September 2, 2009: 10. Obtain the printouts procuring entity
22.5.3 Any Supplemental/ Bid requested as evidence of concerned?
Bulletin issued by the BAC shall the posting.
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the Answer
the IRR.
5. To verify if the BAC 11. From the BAC records Did the BAC inform and
informed and allowed to on submission of bids, allow to modify or
modify or withdraw their bids identify the bidders who withdraw their bids in
have submitted bids accordance with Section
those bidders who have
before the issuance of 26.1 of the IRR the
submitted bids before the
Supplemental/Bid bidders who have
issuance of the Bulletins. submitted bids before
Supplemental/Bid Bulletin the issuance of
12. Go through copies of Supplemental/Bid
Implementing Rules and Regulations letters sent by the BAC to Bulletins?
(IRR) of RA 9184, as amended on these bidders and check if
September 2, 2009: they were informed and
22.5.3 However, bidders who allowed to modify or
have submitted bids before the withdraw their bids in
issuance of the Supplemental/ Bid accordance with Section
Bulletin must be informed and 26.1 of the IRR.
allowed to modify or withdraw their
bids in accordance with Section
26.1 of the IRR.

the contract;
c. etc.
NOTE:
Also refer to the
invited in writing.
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the Answer
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion

Accounts
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Commission on Audit
X-A. SUBMISSION, RECEIPT, OPENING AND
EVALUATION OF BIDS FOR THE PROCUREMENT OF
CONSULTING SERVICES
(Using Quality-Based Evaluation Procedures)
Bids shall be submitted simultaneously in two (2) separate sealed envelopes and received by
the procuring entity on or before the deadline specified in the Request for Expression of Interest.
Opening of Bids shall be on the date, time and place specified in the Request for Expression of
Interest.
Quality Based Evaluation Procedure considers only the Technical Proposals in the ranking of
consultants based on the numerical ratings from the highest to the lowest. The purpose of bid
evaluation is to determine the Highest Rated Bid.
1. To verify if bids were submitted and received at the required date, time, and place;
2. To verify if the BAC opened the bids at the required date, time, place and adopted the
prescribed procedures;
3. To verify if the BAC and the Procuring Entity as a whole performed the evaluation of bids
according to the prescribed procedures and timelines.

2. Receiving logbook of the BAC Secretariat with information on the receipt of bids;
4. Minutes of the Bid Opening;
5. Customized Bidding Documents for the Procurement of Consulting Services;
6. Bidding Documents for the specific procurement;
7. Checklists for Technical Envelope of Consulting Services accomplished by the BAC;
8. TWG report, as reviewed by the BAC, on the evaluation of technical proposals
9. Documentation of oral presentations made by consultants, if any;
10. Rating Sheets for technical proposals;
11. Ranking List approved by the HOPE;
12. Letters of invitation to consultant(s) for opening of financial proposals and negotiations;
13. TWG report , as reviewed by the BAC, on the evaluation of financial proposals
14. Minutes of deliberations/meeting on the negotiation and evaluation of financial proposals;
15. BAC Resolution declaring HRB HOPE;
16. Copy of reports of BAC Observers.

the Answer
SUBMISSION OF BIDS FOR CONSULTING SERVICES
1. To verify if the BAC 1. From the Minutes of Bid Did the BAC determine
determined that all bidders Opening, look for that all bidders
submitted bids: information evidencing submitted bids through
that the BAC compared their duly authorized
a. through their duly
the signatory of the letter representatives?
authorized
submitting the bid with
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the Answer
representatives, the person named in the
b. using the forms specified sworn statement as the
in the Bidding Documents, duly authorized
representative.
c. in two (2) separate sealed
envelopes submitted
simultaneously, 2. From the Minutes of Did the BAC determine
d. with the first envelope Bid Opening, look for that all bidders
containing the technical information where the submitted bids:
component and BAC mentioned opening
e. the second envelope the outer sealed envelope a. in two (2) separate
containing the financial of each bidder with two sealed envelopes
component of the bid (2) sealed envelopes submitted
inside marked ORIGINAL simultaneously?
Implementing Rules and Regulations TECHNICAL PROPOSAL
(IRR) of RA 9184, as amended on and ORIGINAL
September 2, 2009: FINANCIAL PROPOSAL b. with the first
25.1. Bidders shall submit their and also mentioned envelope containing
bids through their duly already opened the technical
authorized representative using envelopes. component?
the forms specified in the
Bidding Documents in two (2)
separate sealed bid envelopes, and
and which shall be submitted
simultaneously. The first shall
contain the technical component c. the second containing
of the bid and the second shall the financial
contain the financial component component of the
of the bid. bid?

Consulting Services, 3rd edition 3. Go through the Minutes Did the BAC validate if
(October 2009) approved per GPPB of the Bid Opening and the bidders submitted
Resolution No. 05-2009 dated look for information on their bids using the
September 30, 2009: the BACs validation if forms specified in the
Section II. INSTRUCTIONS TO each bidder adopted the Bidding Documents?
BIDDERS, ITB Clause 17. forms specified in the
Sealing and Marking of Bids. Bidding Documents.
17.1. Unless otherwise indicated
in the BDS, consultants shall
enclose their original technical
proposal described in ITB Clause
10, in one sealed envelope
marked ORIGINAL TECHNICAL
PROPOSAL, and the original of
their financial proposal in another
sealed envelope marked
ORIGINAL FINANCIAL
PROPOSAL, sealing them all in an
outer envelope marked
ORIGINAL BID.
17.2.

17.5. If bids are not sealed and
marked as required, the Procuring
Entity will assume no responsibility
for the misplacement or
premature opening of the bid.
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2. To verify if the BAC 4. Go through the records Did the bidders
validated that in modifying a of the BAC pertaining to concerned submit their
bid: the submission of bids of bid modifications before
each bidder and check if the deadline for the
a. it was done before the
the submission of submission and receipt?
deadline for the modifications were done
submission and receipt of before the deadline for Was the original bid not
bids, the submission and retrieved?
b. the original bid was not receipt.
retrieved but another bid
equally sealed, properly
identified, was submitted
and linked to the original 5. Go through the Minutes Did the BAC validate if
bid and marked as a of the Bid Opening and the bidders concerned:
look for information on
modification, thereof,
the BACs activities a. did not retrieve the
and stamped received validating if: original bid?
by the BAC
Implementing Rules and Regulations a. modifications were b. but merely

(IRR) of RA 9184, as amended on marked as submitted another
September 2, 2009: modification and bid equally sealed,
26.1. A bidder may modify its bid, stamped received by properly identified,
provided that this is done before the BAC; and linked to the
the deadline for the submission original bid and
and receipt of bids. Where a and marked as a
bidder modifies its bid, it shall not modification,
be allowed to retrieve its original thereof?
bid, but shall only be allowed to b. linked to the original
send another bid equally sealed, bid (not withdrawn). AND
properly identified, linked to its
original bid and marked as a c. stamped received
modification, thereof, and by the BAC?
stamped received by the BAC.
Bid modifications received after
the applicable deadline shall not
be considered and shall be
returned to the bidder unopened.
26.2. A bidder may, through a
letter, 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 this IRR. 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.
RECEIPT OF BIDS FOR THE PROCUREMENT OF CONSULTING SERVICES

1. To verify if the bids were 1. Check the receiving Did the BAC receive
received by the BAC on the: logbook of the BAC on the bids on the date and
a. date, date, time, and place of time specified in the
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b. time, and receipt of bids and Request for Expression
c. place compare these with those of Interest?
specified in the Request for in the Invitation to Bid
Expression of Interest
Implementing Rules and Regulations Did the BAC receive

(IRR) of RA 9184, as amended on bids at the place
September 2, 2009: specified in the
Expression of Interest?
25.4. Bids shall be received by
the BAC on the date, time, and
place specified in the Invitation to Did the BAC not accept
Bid. bids submitted on or
before the deadline for
25.5. Bids, including the eligibility submission of bids not
requirements under Section 23.1 accepted?
of this IRR, submitted after the
deadline shall not be accepted by
the BAC.
2. To verify if the BAC 2. Count the number of Did the BAC observe the
observed the maximum of 75 days from the last day of maximum of 75-
calendar days from the last posting of the Request for calendar days from the
day of posting of the Expression of Interest up last day of posting of
to the deadline for the Request for
Request for Expression of submission and receipt of Expression of Interest
Interest up to the deadline bids and compare with the up to the deadline for
for submission and receipt of 75-calendar-day maximum submission and receipt
bids period. of bids?

September 2, 2009:
25.4. Bids shall be received by
the BAC on the date, time, and
place specified in the Request
for Expression of Interest. The
following periods from the last
day of posting of the /Request
for Expression of Interest up to
the submission and receipt of
bids shall be observed:
a)...
b)
c) For consulting services, a
maximum period of seventy five
(75) calendar days.
OPENING & PRELIMINARY EXAMINATION OF BIDS FOR THE PROCUREMENT OF

CONSULTING SERVICES
1. To verify if the BAC 1. From the Office Order Was there a quorum?
observed quorum. creating the BAC,
determine the number of
Implementing Rules and Regulations BAC members and identify
(IRR) of RA 9184, as amended on the Chairman or Vice-
September 2, 2009: Chairman.
12.3 Quorum
A majority of the total BAC 2. From the Minutes of
composition as designated by the Opening of Bids, check for
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Head of the Procuring Entity shall the presence of the
constitute a quorum for the Chairman or Vice-
transaction of business, provided Chairman and if majority
that the presence of the Chairman or of the BAC members or
Vice-Chairman shall be required. representatives/alternates
attended the proceedings.
2. To verify if the BAC 3. Compare the date and Did the BAC open the
opened the bids immediately time of the opening of bids immediately after
after the deadline for the bids indicated in the the deadline for the
Minutes of the Opening of submission and receipt
Bids with the deadline for of bids?
bids and at the:
a. date, bids stated in the Bidding
b. time, and Documents.
c. place Did the BAC open the
specified in the Request for 4. Compare the date, time bids on the date
Expression of Interest and place of the opening specified in the Request
of bids indicated in the for Expression of
Implementing Rules and Regulations Minutes of the Opening of Interest?
(IRR) of RA 9184, as amended on Bids with those specified
September 2, 2009: in the Request for
29. Bid Opening Expression of Interest.
The BAC shall open the bids Did the BAC open the
immediately after the deadline for bids on the time
the submission and receipt of specified in the Request
bids. [GPPB Resolution No. 13- for Expression of
2009, dated 16 December 2009] Interest?
The time, date, and place of the
opening of bids shall be specified
in the Bidding Documents. The
bidders or their duly authorized Did the BAC open the
representatives may attend the bids at the place
opening of bids. The BAC shall specified in the Request
adopt a procedure for ensuring for Expression of
the integrity, security, and Interest?
confidentiality of all submitted
bids. The minutes of the bid
opening shall be made available
to the public upon written
request and payment of a
specified fee to recover cost of
materials.
3. To verify if the BAC/BAC 5. From the Minutes of Bid Did the BAC read out
Secretariat read out and Opening, check for and record during bid
recorded during bid opening information on the BACs opening letters of
reading out and recording withdrawal of bids?
letters of withdrawal and
of withdrawn bids during
returned to the bidder the the bid opening; checking
envelope containing the of the date of submission
corresponding withdrawn of the withdrawal letter; If the withdrawal of bid
bid unopened, either to the and returning the was made before the
bidders representative if he withdrawn bid unopened. deadline for submission
is present or by registered and receipt of bids,
mail Also check for evidence of return the bids
the return of the unopened to
Philippine Bidding Documents for the withdrawn bids from representatives of the
acknowledged registered bidders concerned
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Procurement of Consulting Services, mails. present during the bid
3rd edition (October 2009) approved opening?
per GPPB Resolution No. 05-2009
20. Modification and Withdrawal
of Bids Did the BAC eturn
20.1. withdrawn bids
20.2. A Consultant may, unopened by registered
through a letter of mail if the withdrawal of
withdrawal, withdraw its bid was made before
bid,after it has been the deadline for
submitted, for valid and submission and receipt
justifiable reason; provided of bids?
that the letter of withdrawal is
received by the Procuring
Entity prior to the deadline
prescribed for submission and 6. From the Minutes of the Did the BAC forfeit the
receipt of bids. Bid Opening, check for bid security and
20.3. Bids requested to be information on recommend the
withdrawn in accordance with withdrawals of bids made imposition of sanctions
ITB Clause 20.1, shall be after the deadline for on bidders who
returned unopened to the submission and receipt of withdrew their bids
Consultants. A Consultant may bids up to the expiration during the interval
also express its intention not to of the period of bid between the deadline
participate in the bidding validity specified by the for submission of bids
through a letter which should bidder in the financial bid and the expiration of
reach and be stamped by the form; and for information the period of bid validity
BAC before the deadline for on forfeiture of bid specified by the Bidder
submission and receipt of bids. security and imposition of on the Financial Bid
A Consultant that withdraws its sanctions on these Form?
bid shall not be permitted to bidders.
submit another bid, directly or
indirectly, for the same
contract.
20.4. No bid may be modified
submission of bids. No bid
may be withdrawn in the
interval between the deadline
for submission of bids and the
expiration of the period of bid
validity specified by the
Consultant on the Financial Bid
Form. Withdrawal of a bid
during this interval shall result
in the forfeiture of the
Consultants bid security,
pursuant to ITB Clause 15.5,
and the imposition of
administrative, civil, and
criminal sanctions as
prescribed by RA 9184 and its
IRR.
4. To verify if the BAC 7. From the Attendance Did the BAC open the
opened the first bid Record/Minutes of the first bid envelopes of
envelopes of the bidders in Opening of Bids check if the bidders in public?
the participants included
public
bidders and observers.
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September 2, 2009:
bidders in public to determine
each bidders compliance with the
submitted for eligibility and for
the technical requirements, as
required documents to ascertain
if they are all present, using a
Instructions to Bidders. 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
the BAC shall rate the said first
bid envelope as passed
5. To verify if the BAC 8. From the Minutes of Did the BAC open first
opened first the technical the Bid Opening, look for the technical
envelopes and ascertained information evidencing envelopes?
that the BAC opened first
compliance of each bidder
each bidders technical
with the documents required
envelope.
to be submitted in the first
envelope by checking the
submitted documents of
each bidder against a 9. Compare the list of Are the contents of the
checklist of required documents in the Checklist for Technical
documents to ascertain if Checklist with the list of Envelope of Consulting
they are all present, using a documents required to be Services accomplished
nondiscretionary pass/fail submitted per the Bidding by the BAC those that
criterion, as stated in the Documents. are required to be
submitted in the
technical envelope per
Bidding Documents?
September 2, 2009:
10. Determine if the Did the BAC ascertain
BACs entries in the the presence of the
Checklist are complete. following documents in
bidders in public to determine each
the technical envelope
bidders compliance with the
of each bidder:
a. The bid security in
the prescribed form,
amount and validity
period?
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bidder against a checklist of b. Organizational chart
required documents to ascertain if for the contract to be
they are all present, using a bid?
Instructions to Bidders. If a bidder c. List of completed and
submits the required document, it on-going projects?
regard, bids that fail to include any d. Approach, work plan,
requirement or are incomplete or and schedule?
the BAC shall rate the said first bid e. List of key personnel
envelope as passed. to be assigned to the
contract to be bid, with
25.2. The first envelope shall their complete
contain the following technical qualification and
information/ documents, at the experience data?
least:
c. For the procurement of
consulting services f. Sworn statement by
i) The bid security in the the prospective bidder
prescribed form, amount and or its duly authorized
validity period; representative in the
ii) Organizational chart for the form prescribed by the
contract to be bid; GPPB as to the
iii) List of completed and on- following:
going projects;
iv) Approach, work plan, and f.1. It is not
schedule: Provided, however, blacklisted or barred
That for architectural design, from bidding by the
submission of architectural GOP or any of its
plans and designs shall not be agencies, offices,
required during the consultants corporations, or LGUs,
selection process; including foreign
v) List of key personnel to be government/ foreign or
assigned to the contract to be international financing
bid, with their complete institution whose
qualification and experience blacklisting rules have
data; and been recognized by the
vi) Sworn statement by the GPPB?
prospective bidder or its duly
form prescribed by the GPPB as f.2. Each of the
to the following: documents submitted
(1) It is not blacklisted or in satisfaction of the
barred from bidding by the bidding requirements is
GOP or any of its agencies, an authentic copy of
offices, corporations, or LGUs, the original, complete,
including foreign and all statements and
government/foreign or information provided
international financing therein are true and
institution whose blacklisting correct?
rules have been recognized by
the GPPB;
(2) Each of the documents f.3. It is authorizing
submitted in satisfaction of the the Head of the
bidding requirements is an Procuring Entity or his
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authentic copy of the original, duly authorized
complete, and all statements representative/s to
and information provided verify all the
therein are true and correct; documents submitted?
(3) It is authorizing the Head of
the Procuring Entity or his duly
authorized representative/s to f.4. The signatory is
verify all the documents the duly authorized
submitted; representative of the
(4) The signatory is the duly prospective bidder, and
authorized representative of granted full power and
the prospective bidder, and authority to do,
granted full power and execute and perform
authority to do, execute and any and all acts
perform any and all acts necessary and/or to
necessary and/or to represent represent the
the prospective bidder in the prospective bidder in
bidding, with the duly notarized the bidding, with the
Secretarys Certificate attesting duly notarized
to such fact, if the prospective Secretarys Certificate
bidder is a corporation, attesting to such fact,
partnership, cooperative, or if the prospective
joint venture; bidder is a corporation,
(5) It complies with the partnership,
disclosure provision under cooperative, or joint
Section 47 of the Act in relation venture?
to other provisions of R.A.
3019;
(6) It complies with the f.5. It complies with
responsibilities of a prospective the disclosure provision
or eligible bidder provided in under Section 47 of the
the PBDs; and Act in relation to other
(7) It complies with existing labor provisions of R.A.
laws and standards, in the case 3019?
of procurement of services.
33.2.1 The BAC shall conduct a f.6. It complies with

detailed evaluation of bids using the responsibilities of a
either of the following evaluation prospective or eligible
procedures as specified in the bidder provided in the
Bidding Documents: PBDs?
a) Quality-Based Evaluation
Procedure
i) f.7. It complies with
ii) After receipt of bids, the existing labor laws and
technical proposals shall first be standards?
opened and evaluated, in
accordance with Section 33.2.2. of
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this IRR. The BAC shall rank the 11. From the Minutes of Did the BAC rate as
consultants in descending order the Bid Opening look for failed in the first
based on the numerical ratings of information indicating that envelope bids that
their technical proposals and the BAC declared as failed to include any
identify the Highest Rated Bid: failed in the first requirement or are
Provided, however, that the envelope bids that failed incomplete or patently
Highest Rated Bid shall pass the to include any insufficient?
minimum score indicated in the requirement or are
Bidding Documents. incomplete or patently
insufficient; otherwise,
that the BAC rated the
Per SAMPLE FORMS FOR first bid envelope as
PROCUREMENT OF CONSULTING passed. Did the BAC rate as
SERVICES published by the GPPB: passed the first
SF-CONS-41 revised 9 May 04 envelope that passed all
(Checklist for Technical Envelope the requirements?
Requirements)
EVALUATION OF TECHNICAL PROPOSALS SUBMITTED BY SHORT LISTED CONSULTANTS

1. To verify if the BAC 1. From the Minutes of the Did the BAC evaluate
evaluated the technical Bid Opening, the the technical proposals
proposals only of the bidders accomplished Checklist for only of the bidders who
the technical envelopes, were rated passed?
who were rated passed
the TWG report duly
reviewed by the BAC
compare the names of the
consultants whose
September 2, 2009:
technical proposals were
evaluated against those
rated passed in the first
bidders in public to determine each
(technical) envelope.
bidders compliance with the
required documents to ascertain if
they are all present, using a
Instructions to Bidders. If a bidder
submits the required document, it
regard, bids that fail to include any
requirement or are incomplete or
the BAC shall rate the said first bid
envelope as passed.

the Procurement of Consulting
Services, 3rd edition (October
2009) approved per GPPB
Resolution No. 05-2009 dated
September 30, 2009:
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Instructions to Bidders No. 24.
Opening and Evaluation of
Technical Proposals.
24.4. Technical proposals shall
not be considered for evaluation
in any of the following cases:
a.
b. Failure to submit any of the
technical requirements
provided under this ITB and
TOR,
c.
2. To verify if the BAC, 2. From the TWG reports Did the BAC, through its
through its Secretariat, put duly reviewed by the BAC, Secretariat, put in
in writing requests for look for information used writing requests for
in the bid evaluation clarification of bids from
clarification of bids from the
which were requested the bidders concerned?
bidders concerned
from the bidders
concerned. Look for the
Implementing Rules and Regulations letter request for said Were the clarifications
(IRR) of RA 9184, as amended on information duly received made by the bidders
September 2, 2009: by the bidder and the concerned in writing?
33.1. From submission and receipt response of the bidder
of bids until the approval by the concerned.
Head of the Procuring Entity of
the ranking of short listed bidders,
those that have submitted their
bids are prohibited from making
any communication with any BAC
member, including its staff and
personnel, as well as its
Secretariat and TWG, regarding
matters connected to their bids.
However, the BAC, through its
Secretariat, may ask in writing the
bidder for a clarification of its bid.
All responses to requests for
clarification shall be in writing.
3. To verify if the BAC 3. From the relevant Were the criteria and
evaluated the technical report(s) of the Technical numerical weights used
proposals of consultants Working Group (e.g. by the BAC those
Rating Sheet for Technical specified in the Bidding
based on the criteria and
Proposal with supporting Documents:
numerical weights for bid information and detailed
evaluation as specified in the evaluation), duly reviewed a. Quality of personnel
Bidding Documents by the BAC; and Minutes to be assigned to the
of Meeting(s) of the BAC, project?
Implementing Rules and Regulations look for information on
(IRR) of RA 9184, as amended on the evaluation conducted b. Experience and
September 2, 2009: on the technical capability of the
proposals. consultant?
33.2.2 The technical proposals of
consultants shall be evaluated c. Plan of approach and
based on the following criteria and methodology?
using the corresponding numerical
weights indicated in the bidding
documents:
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a) Quality of personnel to be 4. Compare the criteria Did the BAC use the
assigned to the project which and numerical weights criteria and numerical
covers suitability of key staff to used by the TWG/BAC in weights for each
perform the duties of the their evaluation (per TWG consultant?
particular assignments and reports and supporting
general qualifications and documents) with those
competence including education specified in the Bidding
and training of the key staff; Documents.
b) Experience and capability of the
consultant which include records
of previous engagement and
quality of performance in similar
and in other projects; relationship
with previous and current clients;
and, overall work commitments,
geographical distribution of
current/ impending projects and
attention to be given by the
consultant. The experience of the
consultant to the project shall
consider both the overall
experiences of the firm and the
individual experiences of the
principal and key staff including
the times when employed by other
consultants; and
c) Plan of approach and
methodology with emphasis on
the clarity, feasibility,
innovativeness and
comprehensiveness of the plan
approach, and the quality of
interpretation of project problems,
risks, and suggested solutions.
4. For complex or unique 5. From the records of the For complex or unique
undertakings, to verify if the oral presentation, count undertakings, did the
BAC required bidders the number of days from BAC require bidders
said presentation to the concerned to make an
concerned to make an oral
deadline for submission of oral presentation within
presentation within 15
technical proposals and 15 calendar days after
calendar days after the compare with the 15-day the deadline for
deadline for submission of maximum. submission of technical
technical proposals proposals?

September 2, 2009:
33.2.2.
For complex or unique
undertakings, such as those
involving new concepts/
technology or financial advisory
services, participating short listed
consultants may be required, at
the option of the agency
concerned, to make an oral
presentation to be presented by
each consultant, or its nominated
Project Manager or head, in case
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of firms, within fifteen (15)
calendar days after the deadline
for submission of technical
proposals.
5. To verify if the BAC 6. From the Rating Sheets To verify if the BAC
excluded the highest and and the Ranking List, excluded the highest
lowest scores for each perform re-computations and lowest scores for
to check if the average each consultant for
consultant for each criterion
score for each consultant each criterion in
in determining the average
for each criterion was determining the
scores of the consultants, computed to exclude the average scores of the
(except when the evaluation highest and lowest scores consultants, (except
was conducted in a collegial for each consultant for when the evaluation
manner) each criterion. was conducted in a
collegial manner)?
September 2, 2009:
33.2.3. In order to eliminate bias
in evaluating the technical
proposals, it is recommended that
the highest and lowest scores for
each consultant for each criterion
shall not be considered in
determining the average scores of
the consultants, except when the
evaluation is conducted in a
collegial manner.
6. To verify if the BAC 7. Go over the names of Did the BAC identify the
identified the proposal with consultant and their Highest Rated Bid
the highest score as the numerical ratings (HRB) by:
indicated in the Report on
Highest Rated Bid (HRB) by
the ranking of consultants a. ranking the
ranking the consultants in and compare with those consultants in
descending order based on indicated in the Rating descending order
the numerical ratings, with Sheet for Technical based on the
consideration of the Proposal. numerical ratings
minimum score indicated in and declaring the
the bidding documents 8. Compare the numerical consultant with the
ratings of the consultants highest score as the
Implementing Rules and Regulations with the minimum score HRB? and
(IRR) of RA 9184, as amended on indicated in the bidding
September 2, 2009: documents. b. with consideration of
33.2.1 The BAC shall conduct a the minimum score
detailed evaluation of bids using indicated in the
either of the following evaluation bidding documents?
procedures as specified in the
Bidding Documents:
Procedure
i)
ii) The BAC shall rank the
consultants in descending order
based on the numerical ratings of
their technical proposals and
identify the Highest Rated Bid:
Provided, however, that the
Highest Rated Bid shall pass the
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minimum score indicated in the
Bidding Documents.
33.4. The proposal with the

highest score shall be identified as
the Highest Rated Bid.
7. To verify if the BAC 9. Based on the letter of Did the BAC

recommended the consultant the BAC and the BAC recommend the
with the HRB to the HOPE for Resolution, determine if consultant with the HRB
the HRB was to the HOPE for
approval
recommended by the BAC approval?
to the HOPE for approval.
September 2, 2009:
33.2.1
a)
i)
ii)
iii) The Head of the Procuring
Entity shall approve or
disapprove the
recommendations of the BAC
within two (2) calendar days
after receipt of the results of the
evaluation from the BAC.
8. To verify if the Highest 10. Count the number of Was the HRB
Rated Bid (HRB) days from the date of recommended by the
recommended by the BAC receipt by the HOPE of the BAC approved by the
letter of the BAC HOPE within two (2)
was approved/disapproved
submitting the BAC calendar days after
recommendation to the receipt of the results of
Entity (HOPE) within two (2) date of approval by the evaluation?
calendar days after receipt of HOPE of the BAC
the results of evaluation Resolution declaring and
recommending the
Implementing Rules and Regulations consultant with the HRB
(IRR) of RA 9184, as amended on and compare with the 2-
September 2, 2009: day maximum.
33.2.1
a)
i)
ii)
iii) The Head of the Procuring Entity
shall approve or disapprove the
within two (2) calendar days after
receipt of the results of the
evaluation from the BAC.
9. To verify if the BAC: 11. Compare the names of Did the BAC:
a. furnished all participating the participating a. furnished all
short listed consultants of consultants (from the participating short
Minutes of the Opening of listed consultants of
the results of evaluation
Bids) with those furnished the results of
(ranking and total scores by the BAC with the evaluation (ranking
only) after the approval by results of the bid and total scores only)
the HOPE of the ranking, evaluation (based on the after the approval by
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and copies of the letters duly the HOPE of the
b. posted the ranking and received by them). ranking?
total scores in the
and
PhilGEPS and the Procuring
b. posted the ranking
Entitys websites for a 12. Using print-outs of and total scores in
period of not less than 7 the web page (PhilGEPS the PhilGEPS website
calendar days and the Procuring Entitys for a period of not
websites) with the posted less than 7 calendar
Implementing Rules and Regulations results of evaluation, days?
(IRR) of RA 9184, as amended on count the number of days
September 2, 2009: from the first to the last and
33.2.4. All participating short listed day of said posting and c. posted the ranking
consultants shall be furnished the compare with the 7-day and total scores in
results (ranking and total scores requirement. the Procuring Entitys
only) of the evaluation after the website for a period
approval by the Head of the of not less than 7
Procuring Entity of the ranking. calendar days?
Said results shall also be posted in
the PhilGEPS and the website of
the procuring entity, whenever
available, for a period of not less
than seven (7) calendar days.
OPENING OF THE FINANCIAL PROPOSAL OF THE CONSULTANT WITH THE HIGHEST RATED BID
(HRB) AND NEGOTIATIONS
1. To verify if the BAC, within 1. From the notice to the Did the BAC notify the
three (3) calendar days after consultant with the HRB, consultant with the HRB
approval by the HOPE of the look for information: within 3 calendar days
on the date of receipt after approval by the
HRB:
of the notice by the HOPE?
a. notified and invited the
consultant; and
consultant with the that the BAC:
Highest Rated Bid (HRB) a. invited the
for the opening of consultant for the Did the notice indicate
financial proposal for the opening of the financial that the BAC invited the
purpose of conducting proposal for the consultant with the HRB
negotiations with the purpose of conducting for the opening of the
said consultant; and negotiations, financial proposal for
b. informed the the purpose of
b. informed the consultant of
consultant of the conducting
the issues in the negotiations?
issues in the technical
technical proposal for proposal which the
clarification during the BAC may wish to clarify
negotiation during the negotiation.
Did the notice indicate
Implementing Rules and Regulations that the BAC informed
(IRR) of RA 9184, as amended on the consultant of the
September 2, 2009: issues in the technical
33.2.1. The BAC shall conduct a proposal which the BAC
detailed evaluation of bids using may wish to clarify
either of the following evaluation during the negotiation?
procedures as specified in the
Bidding Documents:
Procedure

iv) After approval by the Head of
the Procuring Entity of the
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the Answer
Highest Rated Bid, its financial
proposal shall then be opened.
The BAC shall, within three (3)
calendar days, notify and invite
the consultant with the Highest
Rated Bid for the opening of
financial proposal for the
purpose of conducting
negotiations with the said
consultant. In the letter of
notification, the BAC shall
inform the consultant of the
issues in the technical proposal
the BAC may wish to clarify
during negotiations.
2. To verify if the BACs 2. From the Minutes of Did the BACs

negotiation with the the negotiations, look for negotiation with the
consultant with the HRB information on the consultant with the HRB
discussion of: cover:
covered the following:
a. Discussion and
a. Discussion and clarification of the a. Discussion and
clarification of the Terms Terms Of Reference clarification of the
Of Reference (TOR) and (TOR) and Scope of Terms Of Reference
Scope of Services; Services; (TOR) and Scope of
b. Discussion and finalization b. Discussion and Services?
of the methodology and finalization of the
work program proposed by methodology and work
the consultant; program proposed by b. Discussion and
the consultant; finalization of the
c. Consideration of the
c. Consideration of the methodology and
appropriateness of
appropriateness of work program
qualifications and qualifications and proposed by the
pertinent compensation, pertinent compensation, consultant?
number of man-months number of man-months
and the personnel to be and the personnel to be
assigned to the job, taking assigned to the job, c. Consideration of the:
note of over-qualified taking note of over-
personnel, to be qualified personnel, to c.1. appropriateness
be commensurate with of qualifications and
commensurate with the
the compensation of pertinent
compensation of personnel
personnel with the compensation?
with the appropriate appropriate
qualifications, number of qualifications, number c.2. number of man-
man-months and schedule of man-months and months and the
of activities (manning schedule of activities personnel to be
schedule); (manning schedule); assigned to the job,
d. Discussion on the services, d. Discussion on the taking note of over-
facilities and data, if any, services, facilities and qualified personnel,
data, if any, to be to be commensurate
to be provided by
provided by procuring with the
procuring entity; entity; compensation of
e. Discussion on the financial e. Discussion on the personnel with the
proposal submitted by the financial proposal appropriate
consultant; and submitted by the qualifications?
f. Provisions of the contract consultant; and
f. Provisions of the c.3. number of
Implementing Rules and Regulations contract man-months and
(IRR) of RA 9184, as amended on schedule of activities
September 2, 2009: (manning schedule)?
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33.2.5 Negotiations shall cover
the following: d. Discussion on the
a) Discussion and clarification of services, facilities and
the TOR and Scope of Services; data, if any, to be
b) Discussion and finalization of provided by procuring
the methodology and work entity?
program proposed by the
consultant;
c) Consideration of e. Discussion on the
appropriateness of qualifications financial proposal
and pertinent compensation, submitted by the
number of man-months and the consultant?
personnel to be assigned to the
job, taking note of over-
qualified personnel, to be f. Provisions of the
commensurate with the contract?
compensation of personnel with
the appropriate qualifications,
number of man-months and
schedule of activities (manning
schedule);
d) Discussion on the services,
facilities and data, if any, to be
provided by procuring entity;
e) Discussion on the financial
proposal submitted by the
consultant; and
f) Provisions of the contract.
3. To verify if the BAC used 3. From the Minutes of Did the BAC use the
the amount indicated in the the negotiations, look for amount indicated in the
financial envelope of the information on the financial envelope of
discussion where the the consultant with the
consultant with the HRB as
amount indicated in the HRB as the basis for
the basis for negotiations,
financial envelope was negotiations, with the
with the ABC as stated in the used as basis for the ABC as stated in the
Bidding Documents as the negotiations and with the Bidding Documents as
ceiling ABC as stated in the the ceiling?
Bidding Documents as the
33.2.1
ceiling.
a)
i)
v) Negotiations shall be in
4. From the TWG report Did the BAC disqualify
accordance with Section 33.2.5 of
with supporting the consultant with a
this IRR, provided that the amount
documents duly reviewed calculated bid price
indicated in the financial envelope
by the BAC and the exceeding the ABC?
shall be made as basis for
Minutes of the
negotiations and the total contract
negotiations, look for
amount shall not exceed the amount
information on the results
indicated in the envelope and the
of calculation and
approved budget for the contract as
correction of bid prices
and the decision made
33.2.6. Total calculated bid prices, when such evaluation
as evaluated and corrected for minor resulted in the total
arithmetical corrections, such as calculated bid price
computational errors, which exceed exceeding the ABC.
the ABC shall not be considered
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4. To verify if the BAC 5. From the minutes of Did the BAC complete
completed negotiations with the negotiations with the negotiations with
any one consultant within 10 individual consultants, any one consultant
count the number of days within 10 calendar
calendar days
from the start to the end days?
Implementing Rules and Regulations of the negotiations and
(IRR) of RA 9184, as amended on compare with the 10-day
September 2, 2009: period.
33.2.5. Negotiations
a)
.
f)
Except for meritorious reasons,
negotiations with anyone
consultant shall be completed
within ten (10) calendar days.
5. To verify if the BAC 6. From the BAC Did the BAC submit the
submitted their Resolution Resolution check for the BAC Resolution on the
on the results of the approval of the HOPE. results of the
negotiation and their
negotiation and their
recommendations to the
recommendations to the HOPE for approval?
HOPE for approval and if the
HOPE approved the said
results and
recommendations Did the HOPE approve
the results of the BAC
Implementing Rules and Regulations negotiations and their
(IRR) of RA 9184, as amended on recommendations?
September 2, 2009:
33.2.1.
a)
i)

iii) The Head of the Procuring
Entity shall approve or
disapprove the
6. To verify if the BAC 7. Count the number of Did the BAC complete
completed the entire days from the deadline for the bid evaluation
evaluation process including receipt of proposals to process within twenty
the date of submission of one (21) calendar days
submission of the results
the results of bid after the deadline for
thereof to the HOPE for
evaluation to the HOPE receipt of proposals?
approval within twenty one and compare with the 21-
(21) calendar days after the day period.
deadline for receipt of
proposals
September 2, 2009:
33.4. The entire evaluation
process, including submission of
the results thereof to the Head
of the Procuring Entity for
approval, shall be completed in
not more than twenty one (21)
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for receipt of proposals.
IN CASE OF FAILURE OF THE NEGOTIATION WITH THE CONSULTANT WITH THE HIGHEST RATED
BID (HRB)
1. To verify if the BAC 1. From the minutes of Did the BAC terminate
terminated negotiations with the negotiation, look for negotiations with the
the consultant with the HRB information on the official consultant with the HRB
termination of the when no agreement on
when no agreement on all
negotiations as a result of all items discussed was
items discussed was possible
non-agreement in all of possible?
the items discussed with
Implementing Rules and Regulations the consultant with the
(IRR) of RA 9184, as amended on HRB.
September 2, 2009:

Consulting Services Volume 4 (June
2006) published by the GPPB:
Step 1
Step 8. Negotiate with the
consultant with the Highest
Rated Bid.
What happens if negotiations

with the bidder with the HRB
fail?
If agreement on all items
discussed during negotiations is
not possible between the BAC
and the first-in-rank consultant,
the BAC would have to
terminate negotiations and
invite the next-rank consultant
for negotiations. The procedure
for negotiations, as described
above, shall be repeated until
negotiation with the consultant
is successfully completed.
2. To verify if the BAC NOTE: Did the BAC invite the

invited the next-rank For each failure of next-rank consultant for
consultant for negotiations negotiations with negotiations and
the next-rank adopted the same
and adopted the same
conditions and
conditions and procedures bidder, the BAC is
procedures used with
used with the HRB to repeat the
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process until the the HRB?
Implementing Rules and Regulations negotiation is
(IRR) of RA 9184, as amended on completed.
September 2, 2009:
6.2. Once issued by the GPPB, The related audit
activities are
Philippine Bidding Documents likewise to be
(PBDs), and other standard forms repeated.

Consulting Services Volume 4 (June
2006) published by the GPPB:
Step 1
Step 8. Negotiate with the
consultant with the Highest
Rated Bid.
What happens if negotiations

with the bidder with the HRB
fail?
If agreement on all items
discussed during negotiations is
not possible between the BAC
and the first-in-rank consultant,
the BAC would have to
terminate negotiations and
invite the next-rank consultant
for negotiations. The procedure
for negotiations, as described
above, shall be repeated until
negotiation with the consultant
is successfully completed.
INVOLVEMENT OF THE BAC OBSERVERS IN THE OPENING OF THE FINANCIAL PROPOSAL(S) AND
NEGOTIATIONS WITH THE CONSULTANTS WITH THE HRB AND NEXT-IN-RANK
1. To verify if the BAC 1. From the Minutes of the Did the BAC choose the
invited Observers: BAC meeting on the Observers considering:
project-related professional from the pool, check for
organization accredited or information on the BACs a. One representing the
duly recognized by the evaluation in regard to: COA?
Professional Regulation the selection of the
Commission or the Supreme organization from
Court, and a non-government which the Observer will b. One representing the
organization (NGO) from the be invited; project-related
procuring entitys Pool of knowledge, experience professional
Observers; or expertise in organization
procurement or in the accredited or duly
b. that have:
subject matter of the recognized by the
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or expertise in contract to be bid; Professional
procurement or in the no actual or potential Regulation
subject matter of the conflict of interest in Commission or the
contract to be bid; the contract to be bid; Supreme Court?
b.2. no actual or potential and
contract to be bid; and relevant criteria c. One representing a
b.3. conformed with other determined by the non-government
relevant criteria BAC. organization?
c. at least 3 calendar days prior
to the opening of financial d. With knowledge,
proposal experience or
expertise in
procurement or in
the contract to be
September 2, 2009:
bid?
13.1. To enhance the
transparency of the process, the e. With no actual or
BAC shall, in all stages of the potential conflict of
procurement process, invite, in interest in the
addition to the representative of contract to be bid?
the COA, at least two (2)
observers, who shall not have the
right to vote, to sit in its f. Conformed with
proceedings where: other relevant
a) At least one (1) shall come criteria determined
from a duly recognized private by the BAC?
group in a sector or discipline
relevant to the procurement at 2. From certified copies of Did the BAC invite the
hand, for example: the invitations to the Observers at least 3
i) Observers with evidence days from the date of
ii) of receipt, compare the the opening of the
iii) For consulting services, a date of receipt with the 3- financial proposal and
project-related professional day minimum requiremen negotiations?
organization accredited or
duly recognized by the
Professional Regulation
Commission or the
Supreme Court, such as,
but not limited to:
(1) PICE;
Certified Public
Accountants (PICPA);
and
Consulting Organizations;
and
organization (NGO).

an organization duly registered
with the Securities and Exchange
Cooperative Development
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be bid;
to be bid; and

Entity considered the Minutes on the consider the comments/
comments/observations of Negotiations and the observations of the
report of the Observers Observers?
the Observers
check whether a
Implementing Rules and Regulations deliberation was made on
(IRR) of RA 9184, as amended on the comments
September 2, 2009: /observations of the
13.4. The observers shall have observers.
proceedings;
procedure; and
to be bid.
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opened proposals.

b. validity of any payment to non-compliance.
the contract;
c. etc.
NOTE:
Also refer to the
OFFENSES AND
invited in writing.

recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
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Accounts
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X-B. SUBMISSION, RECEIPT, OPENING AND
EVALUATION OF BIDS FOR THE PROCUREMENT OF
CONSULTING SERVICES
(Using Quality-Cost Based Evaluation Procedure)
Bids shall be submitted simultaneously in two (2) separate sealed envelopes and received by
the procuring entity on or before the deadline specified in the Request for Expression of Interest.
Opening of Bids shall be on the date, time and place specified in the Request for Expression of
Interest. Quality Based Evaluation Procedure considers only the Technical Proposals in the ranking of
consultants based on the numerical ratings from the highest to the lowest. The purpose of bid
evaluation is to determine the Highest Rated Bid.
1. To verify if bids were submitted and received at the required date, time, and place;
2. To verify if the BAC opened the bids at the required date, time, place and adopted the
prescribed procedures;
3. To verify if the BAC and the Procuring Entity as a whole performed the evaluation of bids
according to the prescribed procedures and timelines.

2. Invitation letters for the Observers, duly received by them;
3. Reports of the BAC Observers;
5. Receiving logbook of the BAC Secretariat with information on the receipt of bids;
6. Minutes of the Bid Opening;
7. Customized Bidding Documents for the Procurement of Consulting Services;
8. Bidding Documents for the specific procurement;
9. Checklists for Technical Envelope of Consulting Services accomplished by the BAC;
10. TWG report, as reviewed by the BAC, on the evaluation of technical proposals;
11. Documentation of oral presentations made by consultants, if any;
12. Rating Sheets for technical proposals;
13. Minutes of meetings on the evaluation of the technical proposals;
14. BAC Resolution on the evaluation and results of the technical proposals, duly approved by
the HOPE;
15. Letters of notification to consultants on the results of the evaluation (rejection);
16. Letters of notification to consultants on the results of the evaluation of their technical
proposal and invitation for the opening of financial proposals, duly received by them;
17. Minutes of the meetings on the opening of the financial proposals;
18. Checklists for Financial Envelope of Consulting Services accomplished by the BAC;
19. Minutes of the meetings on the evaluation of the financial proposals;
20. TWG report, as reviewed by the BAC, on the evaluation of financial proposals;
21. BAC Resolution, duly approved by the HOPE, on the results of the evaluation of financial
proposals;
22. TWG report with supporting documents, as reviewed by the BAC, on the evaluation of the
combination of the technical and financial proposals and ranking;
23. Ranking List of consultants;
24. BAC Resolution declaring and recommending the HRB/SRB to the HOPE for approval;
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25. Invitation letter for negotiation with the HRB/SRB duly received by the consultant
concerned;
26. Minutes of meetings on the negotiations with the HRB/SRB;
27. TWG report with supporting documents, as reviewed by the BAC, on the evaluation of the
information pertaining to negotiations;
28. BAC Resolution, duly approved by the HOPE, on the results of the negotiations with the
HRB and recommending the conduct of post-qualification evaluation.

of the
Answer
SUBMISSION OF BIDS FOR CONSULTING SERVICES
1. To verify if the BAC 1. From the Minutes of Did the BAC determine
determined that all bidders Bid Opening, look for that all bidders
submitted bids: information evidencing submitted bids:
that the BAC
a. through their duly authorized
compared the
representatives, signatory of the letter a. through their duly
b. using the forms specified in the submitting the bid with authorized
Bidding Documents, the person named in representatives?
c. in two (2) separate sealed the sworn statement
envelopes submitted as the duly authorized
simultaneously, representative. b. in two (2) separate
c. with the first envelope sealed envelopes
containing the technical submitted
2. From the Minutes simultaneously?
component and
of Bid Opening, look
d. the second containing the
for information where
financial component of the bid the BAC mentioned c. with the first
opening the outer envelope containing
Implementing Rules and Regulations (IRR) sealed envelope of the technical
of RA 9184, as amended on September 2, each bidder with two component?
2009: (2) sealed envelopes
25.1. Bidders shall submit their bids inside marked
through their duly authorized ORIGINAL and
representative using the forms TECHNICAL
specified in the Bidding Documents in PROPOSAL and
two (2) separate sealed bid envelopes, ORIGINAL d. the second
and which shall be submitted FINANCIAL containing the financial
simultaneously. The first shall contain PROPOSAL and also component of the bid?
the technical component of the bid and mentioned already
the second shall contain the financial opened envelopes.
component of the bid.
3. Go through the Did the BAC validate if
Philippine Bidding Documents for Minutes of the Bid the bidders submitted
Consulting Services, 3rd edition (October Opening and look for their bids using the
2009) approved per GPPB Resolution No. information on the forms specified in the
05-2009 dated September 30, 2009: BACs validation if Bidding Documents?
Section II. INSTRUCTIONS TO each bidder adopted
BIDDERS, ITB Clause 17. Sealing and the forms specified in
Marking of Bids. the Bidding
17.1. Unless otherwise indicated in the Documents.
BDS, consultants shall enclose their
original technical proposal described in
ITB Clause 10, in one sealed envelope
marked ORIGINAL TECHNICAL
PROPOSAL, and the original of their
financial proposal in another sealed
envelope marked ORIGINAL
FINANCIAL PROPOSAL, sealing them all
in an outer envelope marked ORIGINAL
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BID.
17.2.

17.5. If bids are not sealed and
marked as required, the Procuring Entity
will assume no responsibility for the
misplacement or premature opening of
the bid.
2. To verify if in modifying a bid: 4. Go through the Did the bidders

a. it was done before the deadline records of the BAC concerned submit their
for the submission and receipt pertaining to the bid modifications before
submission of bids of the deadline for the
of bids,
each bidder and check submission and receipt?
b. the original bid was not
if the submission of
retrieved but another bid modifications were Was the original bid not
equally sealed, properly done before the retrieved?
identified, was submitted and deadline for the
linked to the original bid and submission and
marked as a modification, receipt.
thereof, and stamped
received by the BAC
Implementing Rules and Regulations (IRR)

of RA 9184, as amended on September 2, 5. Go through the Did the BAC validate if
2009: Minutes of the Bid modification were
26.1. A bidder may modify its bid, Opening and look for properly identified and
provided that this is done before the information on the linked to the original
deadline for the submission and receipt BACs activities marked as a
of bids. Where a bidder modifies its bid, validating if: modification and
it shall not be allowed to retrieve its a. modifications were stamped received by
original bid, but shall only be allowed to marked as the BAC?
send another bid equally sealed, modification and
properly identified, linked to its original stamped received
bid and marked as a modification, by the BAC; and
thereof, and stamped received by the b. linked to the
BAC. Bid modifications received after the original bid (not
applicable deadline shall not be withdrawn).
considered and shall be returned to the
bidder unopened.
26.2. A bidder may, through a letter,
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 this IRR. 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.
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RECEIPT OF BIDS FOR THE PROCUREMENT OF CONSULTING SERVICES
1. To verify if the bids were 1. Check the receiving Were the bids received
received by the BAC on the: logbook of the BAC on by the BAC on the date
a. date, the date, time, and and time specified in
place of receipt of bids the Invitation to Bid?
b. time, and
and compare these
c. place
with those in the Were the bids received
specified in the Invitation to Bid Invitation to Bid by the BAC at the place
specified in the
Implementing Rules and Regulations (IRR) Invitation to Bid?
of RA 9184, as amended on September 2,
2009:
Were bids submitted on
25.4. Bids shall be received by the BAC or before the deadline
on the date, time, and place specified in for submission of bids
the Invitation to Bid. not accepted?
25.5. Bids, submitted after the

deadline shall not be accepted by the
BAC.
2. To verify if the BAC observed 2. Count the number Did the BAC observe the
the maximum of 75 calendar days of days from the last maximum of 75-
from the last day of posting of the day of posting of the calendar days from the
Request for Expression of Interest Request for Expression last day of posting of
of Interest up to the the Request for
up to the deadline for submission deadline for Expression of Interest
and receipt of bids submission and receipt up to the deadline for
of bids and compare submission and receipt
Implementing Rules and Regulations (IRR) with the 75-calendar- of bids?
of RA 9184, as amended on September 2, day maximum period.
2009:
25.4. Bids shall be received by the BAC
on the date, time, and place specified in
the Request for Expression of Interest.
The following periods from the last day
of posting of the /Request for
Expression of Interest up to the
submission and receipt of bids shall be
observed:
a)...
b)
c) For consulting services, a maximum
period of seventy five (75) calendar
days.
OPENING & PRELIMINARY EXAMINATION OF BIDS FOR THE PROCUREMENT OF CONSULTING

SERVICES
1. To verify if the BAC observed 1. From the Office Was there a quorum?
quorum. Order creating the
BAC, determine the
Implementing Rules and Regulations (IRR) number of BAC
of RA 9184, as amended on September 2, members and identify
2009: the Chairman or Vice-
12.3 Quorum Chairman.
A majority of the total BAC composition
as designated by the Head of the Procuring 2. From the Minutes
Entity shall constitute a quorum for the of Opening of Bids,
transaction of business, provided that the check for the presence
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presence of the Chairman or Vice-Chairman of the Chairman or
shall be required. Vice-Chairman and if
majority of the BAC
members or
representatives/alterna
tes attended the
proceedings.
2. To verify if the BAC opened the 3. Compare the date Did the BAC open the
bids immediately after the and time of the bids immediately after
deadline for the submission and opening of bids the deadline for the
indicated in the submission and receipt
receipt of bids and at the:
Minutes of the of bids?
a. date,
Opening of Bids with
b. time, and the deadline for Did the BAC open the
c. place submission and receipt bids on the date
specified in the Request for of bids stated in the specified in the Request
Expression of Interest Bidding Documents. for Expression of
Interest?
Implementing Rules and Regulations (IRR) 4. Compare the date,
of RA 9184, as amended on September 2, time and place of the Did the BAC open the
2009: opening of bids bids on the time
29. Bid Opening indicated in the specified in the Request
The BAC shall open the bids Minutes of the for Expression of
immediately after the deadline for the Opening of Bids with Interest?
submission and receipt of bids. [GPPB those specified in the
Resolution No. 13-2009, dated 16 Request for Expression Did the BAC open the
December 2009] The time, date, and of Interest. bids at the place
place of the opening of bids shall be specified in the Request
specified in the Bidding Documents. The for Expression of
bidders or their duly authorized Interest?
representatives may attend the opening
of bids. The BAC shall adopt a
procedure for ensuring the integrity,
security, and confidentiality of all
submitted bids. The minutes of the bid
opening shall be made available to the
public upon written request and
payment of a specified fee to recover
cost of materials.
3. To verify if the BAC opened 5. From the Minutes Did the BAC open first
first the technical envelopes and of the Bid Opening, the technical
ascertained compliance of each look for information envelopes?
evidencing that the
bidder with the documents
BAC opened first each
required to be submitted in the
bidders technical
first envelope by checking the envelope.
bidder against a checklist of 6. Compare the Is the Checklist for
required documents to ascertain if Checklist for Technical Technical Envelope of
they are all present, using a Envelope of Consulting Consulting Services
nondiscretionary pass/fail Services with the used by the BAC in
criterion, as stated in the required form (SF- accordance with the
Instructions to Bidders CONS-41: Checklist for required form?
Technical Envelope
Requirements).
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of RA 9184, as amended on September 2, 7. Compare the list of Are the contents of the
2009: documents in the Checklist for Technical
30.1. The BAC shall open the first bid Checklist with the list Envelope of Consulting
envelopes of prospective bidders in public of documents required Services accomplished
to determine each bidders compliance to be submitted per by the BAC those that
with the documents required to be the Bidding are required to be
submitted for eligibility and for the Documents. submitted in the
technical requirements, as prescribed in technical envelope per
this IRR. For this purpose, the BAC shall Bidding Documents?
check the submitted documents of each
bidder against a checklist of required
documents to ascertain if they are all
present, using a nondiscretionary
pass/fail criterion, as stated in the 8. Determine if the Did the BAC ascertain
Instructions to Bidders. If a bidder submits BACs entries in the the presence of the
the required document, it shall be rated Checklist are following documents in
passed for that particular requirement. complete. the technical envelope
In this regard, bids that fail to include any of each bidder:
requirement or are incomplete or patently
insufficient shall be considered as failed. a. The bid security in
Otherwise, the BAC shall rate the said first the prescribed form,
bid envelope as passed. amount and validity
period?
25.2. The first envelope shall contain the
following technical information/ b. Organizational chart
documents, at the least: for the contract to be
c. For the procurement of consulting bid?
services
i) The bid security in the prescribed c. List of completed and
form, amount and validity period; on-going projects?
ii) Organizational chart for the contract
to be bid; d. Approach, work plan,
iii) List of completed and on-going and schedule?
projects;
iv) Approach, work plan, and schedule: e. List of key personnel
Provided, however, That for to be assigned to the
architectural design, submission of contract to be bid, with
architectural plans and designs shall their complete
not be required during the consultants qualification and
selection process; experience data?
v) List of key personnel to be assigned to
the contract to be bid, with their f. Sworn statement by
complete qualification and experience the prospective bidder
data; and or its duly authorized
vi) Sworn statement by the prospective representative in the
bidder or its duly authorized form prescribed by the
representative in the form prescribed by GPPB as to the
the GPPB as to the following: following:
(1) It is not blacklisted or barred from f.1. It is not
bidding by the GOP or any of its blacklisted or barred
agencies, offices, corporations, or from bidding by the
LGUs, including foreign GOP or any of its
government/foreign or international agencies, offices,
financing institution whose blacklisting corporations, or LGUs,
rules have been recognized by the including foreign
GPPB; government/ foreign or
(2) Each of the documents submitted in international financing
satisfaction of the bidding institution whose
requirements is an authentic copy of blacklisting rules have
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the original, complete, and all been recognized by the
statements and information provided GPPB?
therein are true and correct;
(3) It is authorizing the Head of the f.2. Each of the
Procuring Entity or his duly authorized documents submitted
representative/s to verify all the in satisfaction of the
documents submitted; bidding requirements is
(4) The signatory is the duly authorized an authentic copy of
representative of the prospective the original, complete,
bidder, and granted full power and and all statements and
authority to do, execute and perform information provided
any and all acts necessary and/or to therein are true and
represent the prospective bidder in correct?
the bidding, with the duly notarized
Secretarys Certificate attesting to f.3. It is authorizing
such fact, if the prospective bidder is the Head of the
a corporation, partnership, Procuring Entity or his
cooperative, or joint venture; duly authorized
(5) It complies with the disclosure representative/s to
provision under Section 47 of the Act verify all the
in relation to other provisions of R.A. documents submitted?
3019;
(6) It complies with the responsibilities f.4. The signatory is
of a prospective or eligible bidder the duly authorized
provided in the PBDs; and representative of the
(7) It complies with existing labor laws prospective bidder, and
and standards, in the case of granted full power and
procurement of services. authority to do,
execute and perform
33.2.1 The BAC shall conduct a detailed any and all acts
evaluation of bids using either of the necessary and/or to
following evaluation procedures as represent the
specified in the Bidding Documents: prospective bidder in
a) Quality-Based Evaluation Procedure the bidding, with the
i) duly notarized
ii) After receipt of bids, the technical Secretarys Certificate
proposals shall first be opened and attesting to such fact,
evaluated, in accordance with Section if the prospective
33.2.2. of this IRR. The BAC shall rank bidder is a corporation,
the consultants in descending order partnership,
based on the numerical ratings of their cooperative, or joint
technical proposals and identify the venture?
Highest Rated Bid: Provided, however,
that the Highest Rated Bid shall pass the f.5. It complies with
minimum score indicated in the Bidding the disclosure provision
Documents. under Section 47 of the
Act in relation to other
provisions of R.A.
Per SAMPLE FORMS FOR PROCUREMENT 3019?
OF CONSULTING SERVICES published by
the GPPB: SF-CONS-41 revised 9 May 04 f.6. It complies with
(Checklist for Technical Envelope the responsibilities of a
Requirements) prospective or eligible
bidder provided in the
PBDs?
f.7. It complies with

existing labor laws and
standards?
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9. From the Minutes of Did the BAC rate as
the Bid Opening look failed in the first
for information envelope bids that
indicating that the BAC failed to include any
declared as failed in requirement or are
the first envelope bids incomplete or patently
that failed to include insufficient?
any requirement or
are incomplete or
patently insufficient; Did the BAC rate as
otherwise, that the passed in the first
BAC rated the first bid envelope bids that
envelope as passed. passed all the
requirements in the
technical envelope?
EVALUATION OF TECHNICAL PROPOSALS SUBMITTED BY SHORT LISTED CONSULTANTS

1. To verify if the BAC evaluated 1. From the Minutes of Did the BAC evaluate
the technical proposals only of the the Bid Opening, the the technical proposals
bidders who were rated passed accomplished Checklist only of the bidders who
for the technical were rated passed in
in the preliminary examination of
envelopes, the TWG the preliminary
bids
report duly reviewed examination of bids?
Philippine Bidding Documents for the by the BAC compare
Procurement of Consulting Services, 3rd the names of the
edition (October 2009) approved per consultants whose
GPPB Resolution No. 05-2009 dated technical proposals
September 30, 2009: were evaluated
Instructions to Bidders No. 24. Opening against those rated
and Evaluation of Technical Proposals. passed in the first
24.4. Technical proposals shall not be (technical) envelope.
considered for evaluation in any of the
following cases:
a.
b. Failure to submit any of the technical
requirements provided under this ITB and
TOR,
c.
2. To verify if the BAC, through its 2. From the TWG Did the BAC, through its
Secretariat, put in writing reports duly reviewed Secretariat, put in
requests for clarification of bids by the BAC, look for writing requests for
information used in clarification of bids from
from the bidders concerned
the bid evaluation the bidders concerned?
which were requested
from the bidders
concerned. Look for Were the clarifications
2009:
the letter request for made by the bidders
33.1. From submission and receipt of
said information duly concerned in writing?
bids until the approval by the Head of
received by the bidder
the Procuring Entity of the ranking of
and the response of
short listed bidders, those that have
the bidder concerned.
submitted their bids are prohibited from
making any communication with any BAC
member, including its staff and
personnel, as well as its Secretariat and
TWG, regarding matters connected to
their bids. However, the BAC, through its
Secretariat, may ask in writing the bidder
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for a clarification of its bid. All responses
to requests for clarification shall be in
writing.
3. To verify if the BAC evaluated 3. From the TWG Did the BAC evaluate
first the technical proposals report and supporting first the technical
documents, duly proposals of short listed
Implementing Rules and Regulations (IRR) reviewed by the BAC, consultants?
of RA 9184, as amended on September 2, look for information on
2009: the evaluation of the
33.2. The purpose of bid evaluation is to technical proposal
determine the Highest Rated Bid using ahead of the opening
the following steps: of the financial
proposal.
33.2.1. The BAC shall conduct a detailed
evaluation of bids using either of the
following evaluation procedures as
specified in the Bidding Documents:
a) Quality-Based Evaluation Procedure
i)
b) Quality-Cost Based Evaluation
Procedure
i) The technical proposal together with
the financial proposal shall be
considered in the evaluation of
consultants. The technical proposals
shall be evaluated first using the
criteria in Section 33.2.2 of this IRR.
4. To verify if the BAC evaluated 4. From the relevant Were the criteria and
the technical proposals of report(s) of the numerical weights used
consultants based on the criteria Technical Working by the BAC those
Group (e.g. Rating specified in the Bidding
and numerical weights for bid
Sheet for Technical Documents:
evaluation as specified in the
Proposal with
Bidding Documents supporting information a. Quality of personnel
and detailed to be assigned to the
Implementing Rules and Regulations (IRR) evaluation), duly project?
of RA 9184, as amended on September 2, reviewed by the BAC;
2009: and Minutes of b. Experience and
Meeting(s) of the BAC, capability of the
33.2.2 The technical proposals of look for information on consultant?
consultants shall be evaluated based on the evaluation
the following criteria and using the conducted on the c. Plan of approach and
corresponding numerical weights technical proposals. methodology?
indicated in the bidding documents:
a) Quality of personnel to be assigned to
the project which covers suitability of key
staff to perform the duties of the 5. Compare the Did the BAC use the
particular assignments and general criteria and numerical criteria and numerical
qualifications and competence including weights used by the weights for each
education and training of the key staff; TWG/BAC in their consultant?
evaluation for each
b) Experience and capability of the consultant (per TWG
consultant which include records of reports and supporting
previous engagement and quality of documents) with those
performance in similar and in other specified in the
projects; relationship with previous and Bidding Documents.
current clients; and, overall work
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commitments, geographical distribution
of current/ impending projects and
attention to be given by the consultant.
The experience of the consultant to the
project shall consider both the overall
experiences of the firm and the individual
experiences of the principal and key staff
including the times when employed by
other consultants; and
c) Plan of approach and methodology with
emphasis on the clarity, feasibility,
innovativeness and comprehensiveness
of the plan approach, and the quality of
interpretation of project problems, risks,
and suggested solutions.
5. For complex or unique 6. From the records of For complex or unique

undertakings, to verify if the BAC the oral presentation, undertakings, did the
required bidders concerned to count the number of BAC require bidders
days from said concerned to make an
make an oral presentation within
presentation to the oral presentation within
15 calendar days after the
deadline for 15 calendar days after
deadline for submission of submission of the deadline for
technical proposals technical proposals submission of technical
and compare with the proposals?
Implementing Rules and Regulations (IRR) 15-day maximum.
2009:
33.2.2.
For complex or unique undertakings,
such as those involving new concepts/
technology or financial advisory services,
participating short listed consultants may
be required, at the option of the agency
concerned, to make an oral presentation
to be presented by each consultant, or
its nominated Project Manager or head,
in case of firms, within fifteen (15)
calendar days after the deadline for
submission of technical proposals.
6. To verify if the BAC excluded 7. From the TWG Did the BAC exclude the
the highest and lowest scores for evaluation report with highest and lowest
each consultant for each criterion supporting documents, scores for each
duly reviewed by the consultant for each
in determining the average scores
BAC, perform re- criterion in determining
of the consultants, (except when
computations to check the average scores of
the evaluation was conducted in a if the average score the consultants, (except
collegial manner) for each consultant for when the evaluation
each criterion was was conducted in a
Implementing Rules and Regulations (IRR) computed to exclude collegial manner)?
of RA 9184, as amended on September 2, the highest and lowest
2009: scores for each
33.2.3. In order to eliminate bias in consultant for each
evaluating the technical proposals, it is criterion.
recommended that the highest and
lowest scores for each consultant for
each criterion shall not be considered in
determining the average scores of the
consultants, except when the evaluation
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is conducted in a collegial manner.
7. To verify if the HOPE approved 8. From the copy of Did the HOPE approve
or disapproved the the BAC Resolution on or disapprove the
recommendation of the BAC the technical bid recommendation of the
evaluation approved BAC within two (2)
within two (2) calendar days after
by the HOPE, count calendar days after
receipt of the results of the the number of days receipt of the results of
evaluation from the BAC from receipt to the evaluation from the
approval of the BACs BAC?
Implementing Rules and Regulations (IRR) recommendation.
2009:
33.2. The purpose of bid evaluation is to
determine the Highest Rated Bid using
the following steps:

i)
Procedure
The financial proposals of the
consultants who meet the minimum
technical score shall then be opened.
ii)
recommendations of the BAC within
two (2) calendar days after receipt
of the results of the evaluation from
the BAC.
8. To verify if the Procuring Entity: 9. From copies of the Did the Procuring
a. notified those Consultants notification letters, Entity:
whose Bids did not meet the with evidence of
receipt (registered a. notify those
minimum qualifying mark or
letter, facsimile, or Consultants whose
were considered non- electronic mail), Bids did not meet
responsive to the Bidding compare the names of the minimum
Documents and TOR, indicating the consultants rated qualifying mark or
that their Financial Proposals passed with those in were considered
shall be returned unopened the letters. non-responsive to
after completing the selection; the Bidding
b. simultaneously notified the Compare the dates of Documents and
Consultants that have secured the receipt of the TOR, indicating that
letters. their Financial
the minimum qualifying mark,
Proposals shall be
indicating the date and time set
Also look for the returned unopened
for opening the Financial statements that the after completing the
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Proposals bid did not meet the selection?
minimum qualifying
Philippine Bidding Documents for the mark or were b. simultaneously notify
Procurement of Consulting Services 3rd considered non- the Consultants that
Edition (October 2009) approved through responsive to the have secured the
GPPB Resolution No. 05-2009 dated 30 Bidding Documents minimum qualifying
September 2009: and TOR, and that mark, indicating the
Part II, Section III. Bid Data Sheet their Financial date and time set for
ITB Clause 25.2. If the Fund Source is Proposals shall be opening the Financial
GOP returned unopened Proposals?
For Quality Cost Based Evaluation after completing the
(QCBE): After the evaluation of quality is selection; or that they
completed, the Procuring Entity shall have obtained the
notify those Consultants whose Bids did minimum qualifying
not meet the minimum qualifying mark mark with the date
or were considered non-responsive to the and time set for
Bidding Documents and TOR, indicating opening the Financial
that their Financial Proposals shall be Proposals.
returned unopened after completing the
selection process. The Procuring Entity 10. Count the number Was the opening date
shall simultaneously notify the of days from the of Financial Proposals
Consultants that have secured the notification to the indicated in the letter
minimum qualifying mark, indicating the opening date of the not sooner than 2
date and time set for opening the Financial Proposals weeks after the date of
Financial Proposals. The opening date indicated in the letters notification?
shall not be sooner than two weeks after and compare with the
the notification date unless otherwise 2-week minimum
specified in ITB Clause 25.1. The requirement.
notification may be sent by registered
letter, facsimile, or electronic mail.
OPENING AND EVALUATION OF FINANCIAL PROPOSALS OF CONSULTANTS WHO MET THE

MINIMUM TECHNICAL SCORE
1. To verify if the BAC opened the 1. From the Minutes of Did the BAC open the
Financial Proposals in public in the the opening of the Financial Proposals in
presence of the Consultants Financial Proposals public in the presence
look for information on of the Consultants
representatives who chose to
the public opening of representatives who
attend the Proposals. chose to attend?
Philippine Bidding Documents for the
Procurement of Consulting Services 3rd
Edition (October 2009) approved through
GPPB Resolution No. 05-2009 dated 30
September 2009:
Part II, Section III. Bid Data Sheet
ITB Clause 25.2. If the Fund Source is
GOP
For Quality Cost Based Evaluation
(QCBE):

The Financial Proposals shall be opened
publicly in the presence of the
Consultants representatives who choose
to attend. The name of the Consultant,
the quality scores, and the proposed
prices shall be read aloud and recorded
when the Financial Proposals are opened.
The Procuring Entity shall prepare
minutes of the public opening.
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2. To verify if the BAC 2. From the Minutes of Did the BAC:
a. read aloud and recorded the the opening of the
name of the Consultant, the Financial Proposals, a. read aloud and
look for information on record the name of
quality scores, and the
reading out loud of the the Consultant, the
proposed prices when the name of the quality scores, and
Financial Proposals were Consultant, the quality the proposed prices
opened scores, and the when the Financial
and proposed prices Proposals were
b. prepared Minutes of the public opened?
opening of the Financial
Proposals and
b. prepare Minutes of
Philippine Bidding Documents for the the public opening of
Procurement of Consulting Services 3rd the Financial
Edition (October 2009) approved through Proposals?
GPPB Resolution No. 05-2009 dated 30
September 2009:
GOP
For Quality Cost Based Evaluation
(QCBE):

The Financial Proposals shall be opened
publicly in the presence of the
Consultants representatives who choose
to attend. The name of the Consultant,
the quality scores, and the proposed
prices shall be read aloud and recorded
when the Financial Proposals are opened.
The Procuring Entity shall prepare
minutes of the public opening.
3. To verify if the BAC opened 3. From the TWG Did the BAC open only
only the financial proposals of the report and supporting the financial proposals
consultants who met the documents, duly of the consultants who
reviewed by the BAC, met the minimum
minimum technical score
look for information on technical score?
the opening of the
financial proposals of
consultants who met
2009:
the minimum technical
score and compare
with the names of
those whose technical
proposals met the
minimum technical
score.
i)
Procedure
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4. To verify if the BAC evaluated 4. From the TWG Did the BAC evaluate
the financial proposals report duly reviewed the financial proposals
considering: by the BAC, look for considering:
information on the
a. Financial Proposals are
evaluation of financial a. Financial Proposals
complete:
proposals as to: are complete:
a.1. all the documents
mentioned in ITB Clause 11 a. completeness of a.1. all the
were present: documents documents mentioned in
FPF 1. Financial Proposal ITB Clause 11 were
Submission Form should form the b. computational present:
covering letter of the Financial errors were a.1.1 FPF 1.
Proposal. corrected, Financial Proposal
Form FPF 2. Summary of Submission Form
Costs, c. prices in various should form the
FPF 3. Breakdown of Price currencies were covering letter of
per Activity, converted to the the Financial
FPF 4. Breakdown of Philippine peso at Proposal?
Remuneration per Activity, the rate indicated
FPF 5. Reimbursables per in ITB Clause 13, a.1.2 FPF 2.
Activity, and Summary of Costs?
FPF 6. Miscellaneous d. include the cost of
Expenses. Relate to the cost of all taxes, duties, a.1.3 FPF 3.
consulting services under two fees, levies, and Breakdown of Price
distinct categories, namely: (a) other charges per Activity?
Remuneration; and (b) imposed under the
Reimbursable Expenditures. applicable laws, a.1.4 FPF 4.
a.2. all items of the Technical Breakdown of
Proposals that are required to e. special tax Remuneration per
be priced are so priced, privileges are Activity?
granted to a
otherwise rejected the
particular class or a.1.5 FPF 5.
Proposal, nationality of Reimbursables per
b. computational errors were Consultants by Activity?
corrected, virtue of the GOPs
c. prices in various currencies were international a.1.6 FPF 6.
converted to the Philippine peso at commitments, the Miscellaneous
the rate indicated in ITB Clause 13, amount of such tax Expenses. Related
d. include the cost of all taxes, privileges shall be to the cost of
duties, fees, levies, and other included in the consulting services
charges imposed under the Financial Proposal under two distinct
applicable laws, for purposes of categories, namely:
e. special tax privileges are comparative (a) Remuneration;
evaluation of bids, and (b)
granted to a particular class or
Reimbursable
nationality of Consultants by f. Financial Proposal Expenditures?
virtue of the GOPs did not exceed the
international commitments, the ABC,
amount of such tax privileges g. lowest Financial a.2. all items of the
shall be included in the Proposal (Fm) shall Technical Proposals that
Financial Proposal for purposes be given a Financial are required to be priced
of comparative evaluation of Score (Sf) of 100 are so priced, otherwise
bids, points, rejected the Proposal?
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f. Financial Proposal did not
exceed the ABC, h. The Sf of other b. computational errors
g. lowest Financial Proposal (Fm) Financial Proposals were corrected?
were computed
shall be given a Financial Score
based on the c. prices in various
(Sf) of 100 points, formula: Sf = currencies were
h. The Sf of other Financial 100 x Fl/F. converted to the
Proposals were computed based Philippine peso at the
on the formula indicated below: rate indicated in ITB
Clause 13?
Sf = 100 x Fl/F
d. include the cost of all
Philippine Bidding Documents for the taxes, duties, fees,
Procurement of Consulting Services 3rd levies, and other
Edition (October 2009) approved through charges imposed
GPPB Resolution No. 05-2009 dated 30 under the applicable
September 2009: laws?
ITB Clause 25.2. If the Fund Source is e. special tax privileges
GOP are granted to a
For Quality Cost Based Evaluation particular class or
(QCBE) nationality of
Consultants by virtue
The BAC shall determine whether the of the GOPs
Financial Proposals are complete, i.e., all international
the documents mentioned in ITB Clause commitments, the
11 are present and all items of the amount of such tax
corresponding Technical Proposals that privileges shall be
are required to be priced are so priced. included in the
If not the Procuring Entity shall reject Financial Proposal for
the Proposal. The BAC shall correct any purposes of
computational errors and convert prices comparative
into various currencies to the Philippine evaluation of bids?
peso at the rate indicated in ITB Clause
13. The Financial Proposal shall not f. Financial Proposal did
exceed the ABC and shall be deemed not exceed the ABC?
to include the cost of all taxes, duties,
fees, levies, and other charges imposed g. Lowest Financial
under the applicable laws. The evaluation Proposal (Fm) shall be
shall include all such taxes, duties, fees, given a Financial
levies, and other charges imposed under Score (Sf) of 100
the applicable laws; where special tax points?
privileges are granted to a particular
class or nationality of Consultants by h. The Sf of other
virtue of the GOPs international Financial Proposals
commitments, the amount of such tax were computed based
privileges shall be included in the on the formula:
Financial Proposal for purposes of Sf = 100 x Fl/F ?
comparative evaluation of bids.
The lowest Financial Proposal (Fm)
shall be given a Financial Score (Sf) of
100 points. The Sf of other Financial
Proposals shall be computed based on
the formula indicated below:
Sf = 100 x Fl/F
Where:
Sf is the financial score of the Financial
Proposal under consideration,
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Fl is the price of the Fm,
F is the price of the Financial Proposal
under consideration
ITB Clause 11
ITB Clause 11.2
The Financial Proposal requires
completion of six (6) forms, particularly,
FPF 1, FPF 2, FPF 3, FPF 4, FPF 5, FPF
6. FPF 1. Financial Proposal Submission
Form should form the covering letter of
the Financial Proposal. Form FPF 2.
Summary of Costs, FPF 3. Breakdown
of Price per Activity, FPF 4. Breakdown
of Remuneration per Activity, FPF 5.
Reimbursables per Activity, and FPF 6.
Miscellaneous Expenses. Relate to the
cost of consulting services under two
distinct categories, namely: (a)
Remuneration; and (b) Reimbursable
Expenditures.
5. To verify if the BAC rejected for 5. From the TWG Did the BAC reject
reasons of: report and supporting incomplete Proposals
documents, duly (there were items of the
a. incomplete Proposals (there reviewed by the BAC, Technical Proposals that
were items of the Technical look for information on were required to be
Proposals that were required to the evaluation of the priced but not so
be priced but not so priced); financial proposals and priced)?
the results indicating
b. incomplete documents; thereof the
consultants with
c. Financial Proposals exceeded incomplete Did the BAC reject
the ABC proposals/documents proposals with
and whose bid price incomplete documents?
Philippine Bidding Documents for the exceeded ABC.
Procurement of Consulting Services 3rd
Edition (October 2009) approved through
GPPB Resolution No. 05-2009 dated 30 Did the BAC not
September 2009: consider Financial
Part II, Section III. Bid Data Sheet Proposals that exceeded
ITB Clause 25.2. If the Fund Source is the ABC?
GOP
The BAC shall determine whether the
Financial Proposals are complete, i.e., all
the documents mentioned in ITB Clause
11 are present and all items of the
corresponding Technical Proposals that
are required to be priced are so priced.
If not the Procuring Entity shall reject
the Proposal. ..The Financial Proposal
shall not exceed the ABC ..

2009:
33.2.6. Total calculated bid prices, as
evaluated and corrected for minor
arithmetical corrections, such as
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computational errors, which exceed the
ABC shall not be considered
6. To verify if the BAC: 6. From the TWG Did the BAC:

a. determined the Total Score of report and supporting a. determine the Total
each consultant according to documents (Score Score of each
Sheets and consultant according
their combined Technical and
computations, Ranking to their combined
Financial Scores using the
List), duly reviewed by Technical and
assigned weights as indicated the BAC; Minutes of Financial Scores
in the Bidding Document; BAC deliberations; and using the assigned
BAC Resolution weights as indicated
b. ranked the consultants in declaring and in the Bidding
descending order according to recommending to the Document?
their Total Score; HOPE for approval,
letter submitting the b. rank the consultants
results of the bid in descending order
c. identified Rank 1 as the
evaluation to the according to their
consultant with the Highest HOPE, look for Total Score?
Rated Bid (HRB); and information on the
determination of the c. identify Rank 1 as the
d. recommended the HRB to the Total Score of each consultant with the
HOPE for approval consultant, ranking of Highest Rated Bid
the consultants in (HRB)?
Philippine Bidding Documents for the descending order,
Procurement of Consulting Services 3rd declaring and d. recommend the HRB
Edition (October 2009) approved through recommending the to the HOPE for
GPPB Resolution No. 05-2009 dated 30 HRB for approval. approval?
September 2009:
GOP
The lowest Financial Proposal (Fm)
shall be given a Financial Score (Sf) of
100 points. The Sf of other Financial
Proposals shall be computed based on
the formula indicated below:
Sf = 100 x Fl/F
Where:
Sf is the financial score of the Financial
Proposal under consideration,
Fl is the price of the Fm,
F is the price of the Financial Proposal
under consideration
Using the formula S = St x T% + Sf
x p%, the Bids shall then be ranked
according to their combined St and
SF using the weight (T = the
weight given to the Technical
Proposal; F = the weight given to
the Financial Proposal; T + F = 1)
indicated below:
T - [Normally between 0.6 and

0.85]; and
P - [Normally between 0.15 and
0.4];
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provided that the total weights
given to the Technical and Financial
Proposals shall add up to 1.0.
NOTE:
Something is wrong with the
formula! Perhaps F should be P?

2009:

a)
Procedure
ii) The financial and technical proposals
shall be given corresponding weights
with the financial proposal given a
minimum weight of fifteen percent
(15%) up to a maximum of forty
percent (40%). The weight of the
technical criteria shall be adjusted
accordingly such that their total
weight in percent together with the
weight given to the financial
proposal shall add to one hundred
percent (100%).
The exact weights shall be approved
by the Head of the Procuring Entity
upon the recommendation of the
BAC and indicated in the Bidding
Documents. The BAC shall rank the
consultants in descending order
based on the combined numerical
ratings of their technical and
financial proposals and identify the
Highest Rated Bid.
the BAC.
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iv) After approval by the Head of the
Procuring Entity of the Highest
Rated Bid, the BAC shall, within
three (3) calendar days, notify and
invite the consultant with the
Highest Rated Bid for negotiation in
this IRR, except for item (e)
thereof.
7. To verify if the Highest Rated 7. From the copy of Did the HOPE approve
Bid (HRB) recommended by the the BACs letter for the the HRB recommended
BAC was approved/disapproved HOPE count the by the BAC within two
number of days from (2) calendar days after
receipt to the date of receipt of the results of
Entity (HOPE) within two (2) approval of the BAC evaluation?
calendar days after receipt of the Resolution and
results of evaluation compare with the 2-
day maximum.
2009:
a)
Procedure

the BAC.
thereof.
8. To verify if the BAC: 8. Compare the names Did the BAC:

a. furnished all participating short of the participating a. furnish all
listed consultants of the results consultants (from the participating short
Minutes of the listed consultants of
of evaluation (ranking and total
Opening of Bids) with the results of
scores only) after the approval
those furnished by the evaluation (ranking
by the HOPE of the ranking, and BAC with the results of and total scores only)
b. posted the ranking and total the bid evaluation after the approval by
scores in the PhilGEPS and the (based on the copies the HOPE of the
Procuring Entitys websites for a of the letters duly ranking?
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period of not less than 7 received by them).
calendar days and
b. post the ranking and
Implementing Rules and Regulations (IRR) 9. Using print-outs of total scores in the
of RA 9184, as amended on September 2, the web page PhilGEPS website for
2009: (PhilGEPS and the a period of not less
Procuring Entitys than 7 calendar days?
33.2.4. All participating short listed
websites) with the
consultants shall be furnished the results
posted results of and
(ranking and total scores only) of the
evaluation, count the c. post the ranking and
evaluation after the approval by the
number of days from total scores in the
Head of the Procuring Entity of the
the first to the last day Procuring Entitys
ranking. Said results shall also be posted
of said posting and website for a period
in the PhilGEPS and the website of the
compare with the 7- of not less than 7
procuring entity, whenever available, for
day requirement. calendar days?
a period of not less than seven (7)
calendar days.
9. To verify if the BAC, within 10. From the notice to Did the BAC, within
three (3) calendar days after the consultant with the three (3) calendar days
approval by the HOPE of the HRB HRB, look for after approval by the
information: HOPE of the HRB notify
notified and invited the
on the date of and invite the
consultant with the Highest Rated
receipt of the consultant with the
Bid (HRB) for the purpose of notice by the Highest Rated Bid
conducting negotiations with the consultant; and (HRB) for the purpose
said consultant that the BAC of conducting
invited the negotiations with the
Implementing Rules and Regulations (IRR) consultant for the said consultant?
of RA 9184, as amended on September 2, purpose of
2009: conducting
33.2. The purpose of bid evaluation is to negotiations.
a)
Procedure
iii)
thereof.
10. To verify if the BACs 11. From the Minutes Did the BACs
negotiation with the consultant of the negotiations, negotiations with the
with the HRB covered the look for information on consultant with the HRB
the discussion of: cover the following:
following:
a. Discussion and
a. Discussion and clarification of
clarification of the
the Terms Of Reference (TOR)
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and Scope of Services; Terms Of Reference a. Discussion and
b. Discussion and finalization of (TOR) and Scope of clarification of the
the methodology and work Services; Terms Of Reference
b. Discussion and (TOR) and Scope of
program proposed by the
finalization of the Services?
consultant; methodology and
c. Consideration of the work program
appropriateness of qualifications proposed by the b. Discussion and
and pertinent compensation, consultant; finalization of the
number of man-months and the c. Consideration of the methodology and
personnel to be assigned to the appropriateness of work program
job, taking note of over- qualifications and proposed by the
qualified personnel, to be pertinent consultant?
compensation,
commensurate with the
number of man-
compensation of personnel with
months and the c. Consideration of the
the appropriate qualifications, personnel to be appropriateness of
number of man-months and assigned to the job, qualifications and
schedule of activities (manning taking note of over- pertinent
schedule); qualified personnel, compensation,
d. Discussion on the services, to be commensurate number of man-
facilities and data, if any, to be with the months and the
provided by procuring entity; compensation of personnel to be
personnel with the assigned to the job,
and
appropriate taking note of over-
e. Provisions of the contract qualifications, qualified personnel,
number of man- to be commensurate
Implementing Rules and Regulations (IRR) months and with the
of RA 9184, as amended on September 2, schedule of activities compensation of
2009: (manning schedule); personnel with the
d. Discussion on the appropriate
33.2.5 Negotiations shall cover the services, facilities qualifications, number
following: and data, if any, to of man-months and
a) Discussion and clarification of the be provided by schedule of activities
TOR and Scope of Services; procuring entity; (manning schedule)?
b) Discussion and finalization of the e. Discussion on the
methodology and work program financial proposal
proposed by the consultant; submitted by the d. Discussion on the
c) Consideration of appropriateness of consultant; and services, facilities and
qualifications and pertinent f. Provisions of the data, if any, to be
compensation, number of man-months contract provided by procuring
and the personnel to be assigned to entity?
the job, taking note of over-qualified
personnel, to be commensurate with
the compensation of personnel with and
the appropriate qualifications, number
of man-months and schedule of
activities (manning schedule); e. Provisions of the
d) Discussion on the services, facilities contract?
and data, if any, to be provided by
procuring entity;
e) ; and
f) Provisions of the contract.
11. To verify if the BAC completed 12. From the minutes Did the BAC complete
negotiations with any one of the negotiations negotiations with any
consultant within 10 calendar with individual one consultant within
consultants, count the 10 calendar days?
days
number of days from
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Implementing Rules and Regulations (IRR) the start to the end of
of RA 9184, as amended on September 2, the negotiations and
2009: compare with the 10-
day period.
33.2.5. Negotiations
a)
.
f)
Except for meritorious reasons,
negotiations with anyone consultant shall
be completed within ten (10) calendar
days.
12. To verify if the BAC submitted 13. From the BAC Did the BAC submit
their Resolution on the results of Resolution check for their Resolution on the
the negotiation and their the approval of the results of the
HOPE. negotiation and their
recommendations to the HOPE for
recommendations to the
approval HOPE for approval?
and
if the HOPE approved the said
results and recommendations
Did the HOPE approve
the said results and
recommendations?
2009:
33.2.1.
a)
i)

13. To verify if the BAC 14. Count the number Did the BAC complete
completed the entire evaluation of days from the the entire evaluation
process including submission of deadline for receipt of process including
proposals to submission of the
the results thereof to the HOPE for
the date of submission results thereof to the
approval within twenty one (21) of the results of bid HOPE for approval
calendar days after the deadline evaluation to the within twenty one (21)
for receipt of proposals HOPE and compare calendar days after the
Implementing Rules and Regulations (IRR) with the 21-day deadline for receipt of
of RA 9184, as amended on September 2, period. proposals?
2009:
33.4. The entire evaluation process,
including submission of the results
thereof to the Head of the Procuring
Entity for approval, shall be completed
in not more than twenty one (21)
calendar days after the deadline for
receipt of proposals.
IN CASE OF FAILURE OF THE NEGOTIATION WITH THE CONSULTANT WITH THE HIGHEST RATED
BID (HRB)
1. To verify if the BAC terminated 1. From the minutes Did the BAC terminate
negotiations with the consultant of the negotiation, negotiations with the
with the HRB when no agreement look for information on consultant with the HRB
the official termination when no agreement on
on all items discussed was
of the negotiations as all items discussed was
possible
a result of non- possible?
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agreement in all of the
Implementing Rules and Regulations (IRR) items discussed with
of RA 9184, as amended on September 2, the consultant with the
2009: HRB.
6.2. Once issued by the GPPB, the use
of the Generic Procurement Manuals
(GPMs), Philippine Bidding Documents
(PBDs), and other standard forms shall
be mandatory upon all Procuring Entities.
However, whenever necessary, to suit
the particular needs of the procuring
procurement, subject to the approval of
the GPPB.
Generic Procurement Manual of Procedures

for the Procurement of Consulting Services
Volume 4 (June 2006) published by the
GPPB:
Step 1
Step 8. Negotiate with the consultant
with the Highest Rated Bid.
What happens if negotiations with the
bidder with the HRB fail?
If agreement on all items discussed
during negotiations is not possible
between the BAC and the first-in-rank
consultant, the BAC would have to
terminate negotiations and invite the
next-rank consultant for negotiations.
The procedure for negotiations, as
described above, shall be repeated
until negotiation with the consultant is
successfully completed.
2. To verify if the BAC invited the NOTE: Did the BAC invite the
next-rank consultant for For each failure next-rank consultant for
negotiations and adopted the of negotiations negotiations and
with the next- adopted the same
same conditions and procedures
conditions and
used with the HRB rank bidder, the
procedures used with
BAC is to repeat the HRB?
Implementing Rules and Regulations (IRR) the process until
of RA 9184, as amended on September 2, the negotiation is
2009: completed.
The related audit
(PBDs), and other standard forms shall activities are
be mandatory upon all Procuring Entities. likewise to be
However, whenever necessary, to suit repeated.
the GPPB.
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Generic Procurement Manual of Procedures
for the Procurement of Consulting Services
Volume 4 (June 2006) published by the
GPPB:
Step 1
Step 8. Negotiate with the consultant
with the Highest Rated Bid.
What happens if negotiations with the
bidder with the HRB fail?
If agreement on all items discussed
during negotiations is not possible
between the BAC and the first-in-rank
consultant, the BAC would have to
terminate negotiations and invite the
next-rank consultant for negotiations.
The procedure for negotiations, as
described above, shall be repeated
until negotiation with the consultant is
successfully completed.
INVOLVEMENT OF THE BAC OBSERVERS IN THE OPENING OF THE FINANCIAL PROPOSAL(S) AND
NEGOTIATIONS WITH THE CONSULTANTS WITH THE HRB AND NEXT-IN-RANK
1. To verify if the BAC invited 1. From the Minutes of Did the BAC choose the
Observers: the BAC meeting on Observers considering:
a. representing the COA, the the selection of the
Observer from the g. One representing the
pool, check for COA?
organization accredited or duly information on the
recognized by the Professional BACs evaluation in h. One representing the
Regulation Commission or the regard to: project-related
Supreme Court, and a non- the selection of the professional
government organization (NGO) organization from organization
from the procuring entitys Pool which the Observer accredited or duly
of Observers; will be invited; recognized by the
b. that have: knowledge, Professional
experience or Regulation
expertise in Commission or the
expertise in procurement
procurement or in Supreme Court?
or in the subject matter of the subject matter
the contract to be bid; of the contract to i. One representing a
b.2. no actual or potential be bid; non-government
conflict of interest in the no actual or organization?
contract to be bid; and potential conflict of
b.3. conformed with other interest in the j. With knowledge,
relevant criteria contract to be bid; experience or
and expertise in
conformed with procurement or in
c. at least 3 calendar days prior to
other relevant the subject matter of
the opening of the financial criteria determined the contract to be
proposal by the BAC. bid?
Implementing Rules and Regulations (IRR) k. With no actual or

of RA 9184, as amended on September 2, potential conflict of
2009: interest in the
Section 13. Observers contract to be bid?
13.1. To enhance the transparency of the
process, the BAC shall, in all stages of l. Conformed with
other relevant
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the procurement process, invite, in criteria determined
addition to the representative of the by the BAC?
shall not have the right to vote, to sit in 2. From certified Did the BAC invite the
its proceedings where: copies of the Observers at least 3
a) At least one (1) shall come from a duly invitations to the days from the date of
recognized private group in a sector or Observers with the opening of the
discipline relevant to the procurement at evidence of receipt, financial proposal and
hand, for example: compare the date of negotiations?
i) receipt with the 3-day
ii) minimum requirement.
iii) For consulting services, a project-
related professional organization
accredited or duly recognized by the
Professional Regulation Commission or
the Supreme Court, such as, but not
limited to:
(1) PICE;
(2) Philippine Institute of Certified
Public Accountants (PICPA); and
(3) Confederation of Filipino Consulting
Organizations; and
b) The other observer shall come from a
non-government organization (NGO).

Securities and Exchange Commission (SEC)
or the Cooperative Development Authority
criteria:
procurement or in the subject matter of
b) Absence of actual or potential conflict of
interest in the contract to be bid; and

2. To verify if the Procuring Entity 3. Based on the BACs Did the Procuring Entity
considered the Minutes on the consider the comments/
comments/observations of the Negotiations and the observations of the
report of the Observers?
Observers
Observers check
Implementing Rules and Regulations (IRR) whether a deliberation
of RA 9184, as amended on September 2, was made on the
2009: comments
13.4. The observers shall have the /observations of the
following responsibilities: observers.
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conducted by the BAC for submission to
the Head of the Procuring Entity, copy
furnished the BAC Chairman. The report
shall assess the extent of the BACs
compliance with the provisions of this
IRR and areas of improvement in the
BACs proceedings;
entity and furnish a copy to the GPPB
and Office of the Ombudsman/Resident
submitted by the observer, then it
is understood that the bidding
activity conducted by the BAC
followed the correct procedure; and
writing the procuring entity concerned
of any actual or potential interest in the
contract to be bid.
13.5. Observers shall be allowed access

to the following documents upon their
request, subject to signing of a
confidentiality agreement: (a) minutes
of BAC meetings; (b) abstract of Bids;
(c) post-qualification summary report;
(d) APP and related PPMP; and (e)
opened proposals.

1. To verify the effects of Analyze the instances
instances of non-compliance on of non-compliance to Appropriate Audit Working Papers
the: establish the effects
and develop
a. validity of the procurement appropriate audit
activities and outputs including recommendations.
appropriate actions
b. validity of any payment to be
were taken by the
made on the basis of the auditee in regard to
contract; instances of non-
c. etc. compliance.
recommendations
PENALTIES
Observers shall be invited at least three
portion of this
(3) calendar days before the date of the
procurement stage/activity. The absence Audit Guide.
of observers will not nullify the BAC
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2. To verify the causes of Analyze the instances
instances of non-compliance and of non-compliances to Appropriate Audit Working Papers
develop appropriate audit establish the cause(s)
and develop
recommendations
appropriate audit
recommendations.
Also determine if
appropriate actions
were taken by the
instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this
Audit Guide.
and develop
activities and outputs including recommendations.
appropriate actions
were taken by the
c. etc. compliance.
recommendations
PENALTIES
Observers shall be invited at least three
portion of this
(3) calendar days before the date of the
procurement stage/activity. The absence Audit Guide.
of observers will not nullify the BAC

and develop
recommendations
appropriate audit
recommendations.
Also determine if
appropriate actions
were taken by the
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instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this
Audit Guide.
3. To communicate the results of Prepare the
the audit with the auditees appropriate audit/ Audit Observation Memorandum (AOM), if
Management validation document applicable
reflecting the results
COA Circular No. 2009-006 dated of the audit/validation
September 15, 2009 re- Prescribing the and transmit to
Use of the Rules and Regulations on Management
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XII. POST-QUALIFICATION
The Highest Rated Bid (HRB) or Single Rated Bid (SRB), if lone, shall undergo post-
qualification in order to determine whether the bidder concerned complies with and is responsive
to all the requirements and conditions as specified in the Bidding Documents.
1. To verify if the BAC performed the post-qualification according the prescribed

procedures
2. To verify if the BAC performed the prescribed procedures for post-qualification within
the required time

1. BAC Resolution, duly approved by the BAC, on the results of the negotiations with the
HRB with recommendations for approval by the HOPE;
2. Copy of the BAC Secretariats Receiving logbook indicating information on receipt of the:
a) Tax clearance, b) Latest income and business tax returns, c) Certificate of PhilGEPS
Registration; and d) Other appropriate licenses and permits required by law and stated in
the Bidding Documents, submitted by the bidder with the HRB/SRB;
3. Copy each of the documents submitted by the bidder with the HRB/SRB for eligibility
screening, documents comprising the Technical Proposal, documents comprising the
Financial Proposal, documents submitted for post-qualification;
4. TWG report on the post-qualification conducted, including supporting documents as
reviewed by the BAC; evidencing:
5. validation of the authenticity of the documents submitted and information thereon;
6. validation of compliance with the legal, technical, and financial requirements of the
Bidding Documents;
7. conduct of analysis and concluding on the post-qualification or disqualification of the
bidder, as the case may be;
8. BAC Resolutions on post-qualification/post-disqualification, declaration of HRRB/SRRB, and
recommendation to the HOPE;
13. Copies of invitation letters for the BAC Observers, duly received by them;

the Answer
1. To verify if the BAC 1. Match the HRB as Did the BAC conduct
conducted post-qualification indicated in the Notice from post-qualification of the
of the Highest Rated Bid the BAC with the HRB as Highest Rated Bid
indicated in the report on (HRB)?
(HRB)
post-qualification.
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September 3, 2009:
34.1 The Highest Rated Bid shall
undergo post-qualification in order
to determine whether the bidder
concerned complies with and is
responsive to all the requirements
and conditions as specified in the
Bidding Documents.
2. To verify if the BAC 2. From the records of the Did the BAC require the
required the bidder whose BAC, check the date when bidder whose bid was
bid was declared as HRB the bidder with the HRB declared by the BAC as
submitted the: a) Tax HRB /SRB to submit the
/SRB to submit the
clearance, b) Latest income following documents
following documents within
and business tax returns, c) within 3 calendar days
3 calendar days from the Certificate of PhilGEPS from its receipt of the
bidders receipt of the Registration; and d) Other notice:
notice: appropriate licenses and
a) Tax clearance; permits required by law and a) Tax clearance?
b) Latest income and stated in the Bidding
business tax returns; Documents and compare this b) Latest income and
c) Certificate of PhilGEPS with the date of receipt of business tax returns?
the notice that the bidder has
Registration; and
the HRB. c) Certificate of
d) Other appropriate licenses PhilGEPS
and permits required by Registration?
law and stated in the
Bidding Documents and
and d) Other appropriate

whether the bidder licenses and permits
submitted the documents as required by law and
required
Documents?
(IRR) of RA 9184, as amended on Did the bidder with the
September 2, 2009: HRB submit within 3
34.2. Within three (3) calendar calendar days from
days from receipt by the bidder receipt of the notice as
of the notice from the BAC that HRB:
the bidder has the Lowest
Calculated Bid or Highest Rated a. Tax Clearance?
Bid, the bidder shall submit the
following documentary b. Latest income and
requirements to the BAC: business tax returns?
a) Tax clearance;
b) Latest income and business c. Certificate of
tax returns; PhilGEPS
c) Certificate of PhilGEPS Registration?
Registration; and
permits required by law and d. Other appropriate
stated in the Bidding licenses and permits
Documents. required by law and
Documents?
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3. To verify if the BAC: 3. If based on the validation Did the BAC forfeit the
3.1. determined the veracity conducted in 2. above, the bid security and
of the documents submissions were found to be disqualify the bidder for
incomplete and/or not on award because of
submitted and
time, obtain a copy of the failure to submit the
3.2. forfeited the bid BAC Resolution disqualifying required documents on
security and disqualified the bidder and forfeiting its time?
the bidder for award for bid security.
reason that;
a. the bidder failed to
submit the required 4. Obtain from the BAC Did the BAC forfeit the
documents on time, Secretariat documents bid security and
and/or evidencing the BACs disqualify the bidder for
b. there was a finding validation of the veracity of award because of a
the documents submitted and finding against the
against the veracity of
the information thereon and veracity of the
the documents/ check the results of such documents/
information validation. information?
(IRR) of RA 9184, as amended on If the BAC had a finding
September 2, 2009: against the veracity of the
34.2.Within three (3) calendar documents/ information
days from receipt by the bidder of thereon, obtain a copy of the
the notice from the BAC that the BAC Resolution disqualifying
bidder has the Lowest Calculated the bidder and forfeiting its
Bid or Highest Rated Bid, the bidder bid security.
shall submit the following
BAC:
a) Tax clearance;
returns;
Registration; and
security and disqualify the bidder
for award.
4. To verify if the BAC 5. From the TWG report, as Did the BAC validate the
verified, validated, and reviewed by the BAC, and the authenticity of the
ascertained that the bidder Minutes of BAC meetings, Registration documents
look for information submitted by the
with the HRB/SRB was:
evidencing validation of the bidder?
a. a duly licensed Filipino authenticity of the:
citizen/sole proprietor, or a. DTI Registration
b. a Partnerships duly Certificate, duly supported
organized under the laws with:
the DTI-certified copy of
of the Philippines and of
the Registration
which at least seventy five
Certificate and
percent (60%) of the DTI certificate that the
interest belongs to sole proprietor is a
citizens of the Philippines, Filipino citizen (based on
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the Answer
or the application for
registration filed by the
c. a Corporation duly bidder with the DTI),
if the bidder is a sole
organized under the laws
proprietorship;
of the Philippines, and of
which at least seventy five b. SEC registration and of the
percent (60%) of the 60% Filipino ownership,
outstanding capital stock duly supported with:
belongs to citizens of the the SEC-certified copy
Philippines, or of the Registration
Certificate,
d. Cooperatives duly if the bidder is a
partnership;
organized under the laws
of the Philippines, and of
which at least seventy five the 60% Filipino
percent (60%) belongs to ownership, duly supported
citizens of the Philippines, with:
or SEC-certified copy of
the Registration
e. Joint Venture - that Certificate and
Filipino ownership or SEC-certified copy of
the Articles of
interest of the joint
Incorporation
venture concerned shall
if the bidder is a
be at least seventy five corporation.
percent (60%)
d. CDA registration and of
Implementing Rules and Regulations the 60% Filipino
(IRR) of RA 9184, as amended on ownership, duly supported
September 2, 2009: with:
34.3. The post-qualification shall CDA-certified copy of
verify, validate, and ascertain all the Registration
statements made and documents Certificate and
submitted by the bidder with the CDA certificate that at
Highest Rated Bid, using non- least sixty percent
discretionary criteria, as stated in (60%) belongs to
the Bidding Documents. These citizens of the
criteria shall consider, but shall Philippines
not be limited to, the following: if the bidder is a
cooperative
validate, and ascertain licenses, e. Joint Venture individual
certificates, permits, and partners:
agreements submitted by the DTI, SEC, or CDA
bidder, and the fact that it is not registrations and
included in any blacklist as of the 60% Filipino
provided in Section 25.2 of this ownership
IRR. For this purpose, the GPPB duly supported with the
shall maintain a consolidated file DTI-, SEC-, or CDA-
of all blacklisted suppliers, certified Certificate, as the
contractors, and consultants. case may be and DTI-,
SEC-, or CDA-certified
b) Technical Requirements. To documents evidencing
determine compliance of goods, ownership.
infrastructure projects, or
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consulting services offered with 6. From the TWG report, as Did the BAC validate
the requirements specified in reviewed by the BAC, and the Filipino ownership?
the Bidding Documents, Minutes of BAC meetings,
including, where applicable: look for information
i) Verification and validation of evidencing validation of
the bidders stated competence Filipino ownership of the
and experience, and the bidders firm.
competence and experience of
the bidders key personnel to be
assigned to the project, for the
procurement of infrastructure
projects and consulting services;
ii) Verification of availability and
commitment, and/or inspection
and testing for the required
capacities and operating
conditions, of equipment units
to be owned/leased/under
purchase by the bidder for use
in the contract under bidding, as
well as checking the
performance of the bidder in its
ongoing government and
private contracts (if any of these
on-going contracts shows a
reported negative slippage of at
least fifteen percent (15%), ;
iii)
sufficiency of the bid security as
to type, amount, form and
wording, and validity period;
c) Financial Requirements. To
verify, validate and ascertain
the bid price proposal of the
bidder and, whenever
bidders NFCC to ensure that
the bidder can sustain the
operating cash flow of the
transaction.
24.3.1. The following

persons/entities shall be allowed
to participate in the bidding for
consulting services:
a) Duly licensed Filipino
citizens/sole proprietorships;
b) Partnerships duly organized
Philippines and of which at
least sixty percent (60%) of
the interest belongs to citizens
of the Philippines;
c) Corporations duly organized
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Philippines and of which at
least sixty percent (60%) of
the outstanding capital stock
belongs to citizens of the
Philippines;
d) Cooperatives duly organized
Philippines, and of which at
least sixty percent (60%)
belongs to citizens of the
Philippines; or
e) Persons/entities forming
themselves into a joint venture,
i.e., a group of two (2) or more
persons/entities that intend to
be jointly and severally
responsible or liable for a
particular contract: Provided,
however, That Filipino
ownership or interest thereof
shall be at least sixty percent
(60%). For this purpose,
Filipino ownership or interest
shall be based on the
contributions of each of the
members of the joint venture
as specified in their JVA.
24.3.2. When the types and fields

of consulting services in which the
foregoing persons/entities wish to
engage involve the practice of
professions regulated by law, those
who will actually perform the
services shall be Filipino citizens
and registered professionals
authorized by the appropriate
regulatory body to practice those
professions and allied professions.
24.3.3. In order to manifest trust

and confidence in and promote the
development of Filipino
consultancy, foreign consultants
may be hired in the event Filipino
consultants do not have the
sufficient expertise and capability to
render the services required under
the project, as determined by the
Head of the Procuring Entity.
Foreign consultants may be eligible
to participate in the procurement of
consulting services, subject to the
following qualifications:
a) must be registered with the SEC
and/or any agency authorized by
the laws of the Philippines; and
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b) when the types and fields of
consulting services in which the
foreign consultant wishes to
engage involve the practice of
regulated professions, the foreign
consultant must be authorized by
the appropriate GOP professional
regulatory body to engage in the
practice of those professions and
allied professions: Provided,
however, That the limits of such
authority shall be strictly
observed.
verified, validated, and reviewed by the BAC, and the validate, and ascertain
ascertained that the when Minutes of BAC meetings, that the when the
look for information types and fields of
the types and fields of
evidencing validation of the consulting services
consulting services involve authenticity of the: involve the practice of
the practice of professions a. Document attesting to professions regulated
regulated by law, those who the Filipino citizenship of by law, those who will
will actually perform the the persons who will actually perform the
services shall be Filipino actually perform the services shall be
citizens and registered services, Filipino citizens and
professional authorized by b. Authorization document registered professional
the appropriate regulatory issued by the appropriate authorized by the
GOP professional appropriate regulatory
body to practice those
regulatory body to body to practice those
professions and allied
engage in the practice of professions and allied
profession those professions and profession?
allied professions
September 2, 2009:
24.3.2. When the types and
fields of consulting services in
which the foregoing
persons/entities wish to engage
involve the practice of
professions regulated by law,
those who will actually perform
the services shall be Filipino
citizens and registered
professional authorized by the
appropriate regulatory body to
practice those professions and
allied professions.
6. To verify if the BAC 8. From the TWG report with Did the BAC verify,
verified, validated, and supporting documents and validate, and ascertain
ascertained that the Foreign duly reviewed by the BAC, the authenticity of the
and the Minutes of BAC following documents
consultant with the
meetings, look for submitted by the
HRB/SRB was:
information evidencing Foreign consultant with
a. registered with the SEC validation of the authenticity the HRB/SRB was:
and/or any agency of the:
authorized by the laws of a. SEC registration of the a. SEC registration of
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the Philippines; foreign consultant, the foreign
and consultant?
b. when the types and fields b. Authorization document
issued by the appropriate b. Authorization
of consulting services in
GOP professional document issued by
which the foreign regulatory body to the appropriate GOP
consultant wishes to engage in the practice of professional
engage involve the those professions and regulatory body to
practice of regulated allied professions and engage in the practice
professions, the foreign stating the limits of such of those professions
consultant was authority. and allied professions
authorized by the and stating the limits
appropriate GOP of such authority.
professional regulatory
body to engage in the
9. From the TWG report with Did the BAC verify,
practice of those supporting documents and validate, and ascertain
professions and allied duly reviewed by the BAC, that the Foreign
professions observing the and the Minutes of BAC consultant with the
limits of such authority meetings, look for HRB/SRB was:
information evidencing a. registered with the
Implementing Rules and Regulations validation of the: SEC and/or any
(IRR) of RA 9184, as amended on registration with the SEC agency authorized
September 2, 2009: and/or any agency by the laws of the
24.3.3. In order to manifest trust authorized by the laws of Philippines?
and confidence in and promote the the Philippines, and
development of Filipino authorization by the b. when the types and
consultancy, foreign consultants appropriate GOP fields of consulting
may be hired in the event Filipino professional regulatory services in which the
consultants do not have the body to engage in the foreign consultant
sufficient expertise and capability to practice of those wishes to engage
render the services required under professions and allied involve the practice
the project, as determined by the professions observing of regulated
Head of the Procuring Entity. the limits of such professions foreign
Foreign consultants may be eligible authority, when the types consultant was
to participate in the procurement of and fields of consulting authorized by the
consulting services, subject to the services in which the appropriate GOP
following qualifications: foreign consultant wishes professional
a) must be registered with the SEC to engage involve the regulatory body to
and/or any agency authorized by practice of regulated engage in the
the laws of the Philippines; and professions. practice of those
b) when the types and fields of professions and
consulting services in which the allied professions
foreign consultant wishes to observing the limits
engage involve the practice of of such authority?
regulated professions, the foreign
consultant must be authorized by
the appropriate GOP professional
regulatory body to engage in the
practice of those professions and
allied professions: Provided,
however, That the limits of such
authority shall be strictly
observed.
verified, validated, and reviewed by the BAC, and the validate, and ascertain
ascertained that the Mayors Minutes of BAC meetings, that the Mayors Permit
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Permit submitted by the look for information submitted by the bidder
bidder with the HRB/SRB evidencing validation of is authentic?
was issued by the city or authenticity of the Mayors
Permit and whether it was
municipality where the
issued by the city or Did the BAC verify,
principal place of business of municipality where the validate, and ascertain
the prospective bidder is principal place of the that the Mayors Permit
located business of the bidder is submitted by the bidder
located, duly supported with: was issued by the city
Implementing Rules and Regulations The LGU-certified copy or municipality where
(IRR) of RA 9184, as amended on of the Mayors permit, the principal place of
September 2, 2009: and business of the bidder is
34.3. The post-qualification shall DTI-, SEC-, or CDA- located?
verify, validate, and ascertain all certified Registration
statements made and documents Certificate showing the
submitted by the bidder with the bidders principal place
Lowest Calculated Bid/Highest of business
Rated Bid, using non-
bidder, and the fact that it is
not included in any blacklist
as provided in Section 25.2 of
this IRR. For this purpose, the
GPPB shall maintain a
consolidated file of all
blacklisted suppliers,

23.1. For purposes of
determining the eligibility of
bidders using the criteria stated
in Section 23.5 of this IRR, only
the following documents shall
be required by the BAC, using
the forms prescribed in the
Bidding Documents,:
Legal Documents
i) ---
city or municipality where
the principal place of
business of the prospective
bidder is located.
verified, validated, and with supporting documents, validate, and ascertain
ascertained that the bidder duly reviewed by the BAC, that the bidder is not
and the Minutes of BAC included in any
is not included in any
meetings, look for blacklist?
blacklist
information evidencing
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Implementing Rules and Regulations validation by the BAC that
(IRR) of RA 9184, as amended on the bidder is not included in
September 2, 2009: any blacklist .
Highest Rated Bid, using non-
bidder, and the fact that it is
not included in any
blacklist as provided in
Section 25.2 of this IRR. For
this purpose, the GPPB shall
maintain a consolidated file of
all blacklisted suppliers,
contractors, and consultants
25.2. The first envelope shall

contain the following technical
information/documents, at the
least:
c) For the procurement of consulting

services
vi) Sworn statement by the
prospective bidder or its duly
form prescribed by the GPPB as to
the following:
(1) It is not blacklisted or
barred from bidding by the GOP
or any of its agencies, offices,
corporations, or LGUs, foreign
government/foreign or
international financing institution
whose blacklisting rules have
been recognized by the GPPB;
(2) 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;
(3) It is authorizing the Head
of the Procuring Entity or his duly
authorized representative/s to
verify all the documents
submitted;
(4) The signatory is the duly
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authorized and designated
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
Secretarys Certificate attesting to
such fact, if the prospective
bidder is a corporation,
partnership or joint venture;
(5) It complies with the
disclosure provision under
Section 47 of the Act in relation
to other provisions of R.A. 3019;
(6) It complies with the
responsibilities of a prospective
or eligible bidder provided in the
PBDs; and
(7) It complies with existing
labor laws and standards.
9. To verify if the BAC 12. From the TWG report Did the BAC validate the
validated the bidders with supporting documents, relationship of the
compliance with the no duly reviewed by the BAC, bidder with the:
the Minutes of BAC
meetings/deliberations and a. HOPE?
embodied in Section 47 of
BAC Resolution, check for
the Revised IRR of RA No. information showing the b. members of the BAC?
9184, i.e., that the bidder is BACs validation that:
not related by consanguinity a. the individual bidder in an c. members of the
or affinity up to the 3rd civil individual or a sole TWG?
degree to the: proprietorship, is not
a. HOPE, related to the persons d. members of the BAC
b. members of the BAC, mentioned in Sec. 47, Secretariat?
Amended IRR of RA 9184;
c. members of the TWG,
b. all the officers and e. head of the Project
d. members of the BAC members of the bidder Management Office
Secretariat, partnership are not (PMO)?
e. head of the Project related to the persons
Management Office mentioned in Sec. 47, f. head of the end-user
(PMO), Amended IRR of RA 9184; unit?
f. head of the end-user unit, c. all the officers, directors,
g. project consultants and controlling g. project consultants?
stockholders of the bidder
Section 47. Disclosure of corporation are not
Relations related to the persons
All bids shall be accompanied by a mentioned in Sec. 47,
sworn affidavit of the bidder that it Amended IRR of RA 9184.
is not related to the Head of the
BAC, the TWG, and the BAC 13. From the TWG report, as Did the BAC
Secretariat, the head of the PMO or reviewed by the BAC, the automatically disqualify
the end-user unit, and the project Minutes of BAC the bidder found to be
consultants, by consanguinity or meetings/deliberations and related within the 3rd
affinity up to the third civil degree. BAC Resolution, check for civil degree of
Failure to comply with the information showing the consanguinity or affinity
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aforementioned provision shall be a BACs decision/action in case with the persons listed
ground for the automatic of violation with the no in Section 47 of the
disqualification of the bid in relationship provision. Revised IRR of RA
consonance with Section 30 of this 9184?
IRR. For this reason, relation to
the aforementioned persons
within the third civil degree of
consanguinity or affinity shall
automatically disqualify the
bidder from participating
in the procurement of contracts
of the procuring entity. On the
part of the bidder, this
persons:
himself;
b) If the bidder is a partnership, to
all its officers and members;
c) If the bidder is a corporation, to
all its officers, directors, and
d) If the bidder is a joint venture,
the provisions of items (a), (b),
or (c) of this Section shall
venture, as may be appropriate
validated the bidders stated with supporting documents, bidders stated
competence and experience duly reviewed by the BAC, competence and
and the Minutes of BAC experience against the
Implementing Rules and Regulations meetings, check for requirements stated in
(IRR) of RA 9184, as amended on information showing the the Bidding Documents?
September 2, 2009: BACs validation of the From
34.3. The post-qualification shall the TWG report, as reviewed
verify, validate, and ascertain all by the BAC, and the Minutes
statements made and documents of BAC meetings, check for
submitted by the bidder with the information showing the
Lowest Calculated Bid/Highest BACs validation of the stated
Rated Bid, using non-discretionary competence and experience
criteria, as stated in the Bidding of the consulting
Documents. These criteria shall firm/consultant himself
consider, but shall not be limited to, compared to the competence
the following: and experience required as
b) Technical Requirements. To Documents
determine compliance of the
goods, infrastructure projects, or
consulting services offered with
the requirements specified in the
where applicable:
i) Verification and validation of

the bidders stated competence
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and experience, and the
the bidders key personnel to
be assigned to the project, for
the procurement of
consulting services;
validated the stated with supporting documents, stated competence and
competence and experience duly reviewed by the BAC, experience of the
and the Minutes of BAC bidders key personnel
of the bidders key personnel
meetings, check for to be assigned to the
to be assigned to the project information showing the project?
BACs validation of the
competence and experience
of the bidders key personnel
September 2, 2009:
to be assigned to the project.
consider, but shall not be limited to,
the following:

b) Technical Requirements. To
determine compliance of the
goods, infrastructure projects, or
consulting services offered with
the requirements specified in the
where applicable:
i) Verification and validation of

the bidders stated competence
and experience, and the
the bidders key personnel to
be assigned to the project, for
the procurement of
consulting services.
12. To verify if the BAC 16. From the TWG report, as Did the BAC ascertain
verified, validated, and reviewed by the BAC, the the sufficiency of the
ascertained authenticity of Minutes of BAC bid security as to:
meetings/deliberations and
the bid security and its
BAC Resolution, check for a. type?
sufficiency as to:
information showing the
a. type, BACs validation of the b. amount?
b. amount, authenticity of the bid
c. form and wording, and security and its sufficiency as c. form and wording?
d. validity period. to type, amount, form and
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wording, and validity period. d. validity period?
September 2, 2009:
b. Legal
Requirements
i)
ii)
iii)
sufficiency of the bid security
as to type, amount, form and
wording, and validity period.
verified, validated, and reviewed by the BAC, the validate, and ascertain
ascertained if the Net Minutes of BAC that the:
meetings/deliberations and
Financial Contracting
BAC Resolution, check for a. NFCC is at least equal
Capacity (NFCC) is at least
information showing the to the ABC? or
equal to the ABC or the BACs:
Credit Line Certificate (CLC) a. validation of the b. CLC is at least 10%
in favor of the prospective authenticity of the CLC or of the ABC?
bidder if awarded the the financial statements
contract is at least 10% of used as basis for
the ABC computing the NFCC,
b. validation of the accuracy
Implementing Rules and Regulations of the computation for
(IRR) of RA 9184, as amended on NFCC,
September 2, 2009: c. validation of the
34.3. The post-qualification shall Statement of the
verify, validate, and ascertain all prospective bidder of all
statements made and documents its ongoing and completed
submitted by the bidder with the government and private
Lowest Calculated Bid, using non- contracts, including
discretionary criteria, as stated in contracts awarded but not
the Bidding Documents. These yet started, and
criteria shall consider, but shall d. comparison with the
not be limited to, the following: requirements.
a) Legal Requirements .
b) Technical Requirements
c) Financial Requirements
To verify, validate and
ascertain the bid price proposal
of the bidder and, whenever
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bidders NFCC to ensure that
the bidder can sustain the
operating cash flow of the
transaction.
23.5.1.4. If the prospective

bidder submits a computation of
its NFCC, the NFCC must be at
least equal to the ABC to be bid,
calculated as follows:

uncompleted portions of the
projects under ongoing contracts,
including awarded contracts yet
to be started coinciding with the
contract to be bid.
Where:
K = 10 for a contract duration
of one year or less, 15 for a
contract duration of more than
one year up to two years, and
20 for a contract duration of
more than two years.
If the prospective bidder
submits a CLC, the CLC must
be at least equal to ten percent
(10%) of the ABC to be bid. If
the CLC is issued by a foreign
Universal or Commercial Bank,
it shall be confirmed or
authenticated by a Universal or
Commercial Bank. For biddings
conducted by LGUs, the
certified by the BSP as
authorized to issue such
financial instrument.
23.1.
Technical Documents
completed government and private
contracts, including contracts
awarded but not yet started, if any,
whether similar or not similar in
nature and complexity to the
contract to be bid, within the
relevant period as provided in the
Bidding Documents. The statement
shall include all information
required in the PBDs prescribed by
the GPPB.
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14. To verify if the BAC 18. From the post Did the HRB/SRB pass
declared the post-qualified qualification report of the post-qualification?
HRB/SRB as the Highest TWG, as reviewed by the
BAC, check if the HRB/SRB
RAted Responsive Bid
passed all the criteria for post
(HRRB/SRRB) qualification.
Did the BAC declare the
Implementing Rules and Regulations 19. Match the name of the HRB/SRB as the Highest
(IRR) of RA 9184, as amended on HRRB/SRRB as approved by rated Responsive Bid/
September 2, 2009: the HOPE with the name of Single Rated Responsive
34.4. If the BAC determines that bidder as indicated in the Bid (HRRB/SRRB)?
the bidder with the Highest Rated BAC resolution
Bid passes all the criteria for post- recommending HRRB/SRRB
qualification, it shall declare the
said bid as the Highest Rated
Responsive Bid, and recommend If Yes, proceed to:
to the Head of the Procuring AWARD OF
Entity the award of contract to the CONTRACT.
said bidder at its submitted bid
price or its calculated bid price,
whichever is lower, or in the case If No, proceed to the
of quality-based evaluation Sub-Objectives in
procedure, submitted bid price or
case of post-
its negotiated price, whichever is
lower. disqualification of
the bidder with
the HRB/SRB.
IN CASE OF POST-DISQUALIFICATION OF THE BIDDER WITH THE HIGHEST RATED BID (HRB) -FOR
THE PROCUREMENT OF CONSULTING SERVICES
1. To verify if the BAC, in 1. From the records of the Did the BAC
case of post-disqualification BAC Secretariat, check for immediately notify the
of the HRB/SRB immediately information on the date of HRB/SRB of the post-
receipt by the post- disqualification?
notified the HRB/SRB in
disqualified bidder of the
writing of the post-
notice and for the grounds Did the BAC indicate in
disqualification with the for disqualification indicated the notice the grounds
grounds for it. thereon. for post-disqualification?

September 2, 2009:
NOTE:
34.5. If, however, the BAC
determines that the bidder with If the motion for
the Highest Rated Bid fails the reconsideration of the
criteria for post-qualification, it SRB is denied,
shall immediately notify the said proceed to the audit
bidder in writing of its post- matrix on Failure of
disqualification and grounds for it. Bidding.
2. To verify if the BAC 2. Look for the TWG report Did the BAC conduct
conducted and completed on the post-qualification of and complete the post-
the post-qualification of the the second rank bidder as qualification of the
reviewed by the BAC. second rank bidder?
second rank bidder using the
same post-qualification
process adopted for the HRB
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(IRR) of RA 9184, as amended on 3. Repeat the audit activities
September 2, 2009: on the sub-objectives for the
34.6. the BAC shall initiate and post-qualification for the
complete the same post- second rank bidder.
with the second Highest Rated 4. Analyze the post- Did the BAC adopt the
Bid. qualification reports of the same process of
TWG, as reviewed by the verifying, validating and
BAC, for the HRB and the ascertaining all
second rank bidder to check statements made and
whether the TWG adopted documents submitted
the same process of by the HRB and the
verifying, validating and second rank bidder?
ascertaining all statements
made and documents
submitted by the HRB and
the second rank bidder.
5. From the post Did the second rank

qualification report of the bidder pass the post-
TWG, as reviewed by the qualification?
BAC, check if the second rank
bidder passed the post
qualification.
If NO, go back to the

sub-objectives for
NOTE: the post-
For each post- qualification
disqualification of the process.
next-rank bidder, the
BAC is to repeat the
post-qualification If Yes, proceed to
process until the Sub-objective
HRRB is declared for when the motion
award. for
reconsideration of
The related audit the post-
activities are likewise disqualified HRB
to be repeated. is denied
3. To verify if the BAC 6. From the Minutes of the Did the BAC declare the
declared the HRB as the BAC meeting, analyze if the HRB as the HRRB after
HRRB after its request for BAC declared the HRB as the its request for
HRRB after its request for reconsideration was
reconsideration was granted
reconsideration has been granted and it was
and it was declared post-
granted and it was declared declared post-qualified?
qualified post-qualified.
Implementing Rules and Regulations 7. Match the name of the

(IRR) of RA 9184, as amended on HRRB as approved by the
September 2, 2009: HOPE with the name of
Implementing Rules and Regulations bidder as indicated in the
(IRR) of RA 9184, as amended on BAC Resolution
September 3, 2009: recommending the HRRB.
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o 34.4. If the BAC determines
that the bidder with the Highest
Rated Bid passes all the criteria
for post-qualification, it shall
declare the said bid as the
Highest Rated Responsive Bid,
and recommend to the Head of
the Procuring Entity the award of
contract to the said bidder at its
submitted bid price or its
lower, or in the case of quality-
based evaluation procedure,
submitted bid price or its
negotiated price, whichever is
lower.

request for reconsideration
thereof, the BAC shall initiate and
complete the same post-
qualification process on the
bidder with the second Highest
Rated Bid. If the second bidder
passes the post-qualification, and
provided that the request for
has been denied, the second
the bidder with the Highest Rated
Responsive Bid.
WHEN THE MOTION FOR RECONSIDERATION OF THE POST-DISQUALIFIED HRB IS DENIED

1. To verify if the BAC 1. From the Minutes of the Did the BAC declare the
declared the post-qualified BAC meeting, analyze if the post-qualified second-
second-rank bidder as the BAC declared the post- rank bidder as the
qualified second-rank bidder HRRB after a request
HRRB after a request for
as the HRRB after a request for reconsideration of
reconsideration of the HRB
for reconsideration of the the HRB (first-rank) has
(first-rank) has been denied HRB (first-rank) has been been denied?
denied.
amended on September 2, 2009: 2. Match the name of the
34.6. If the second bidder HRRB as approved by the
passes the post-qualification, and HOPE with the name of
provided that the request for bidder as indicated in the
reconsideration of the first bidder BAC Resolution
has been denied, the second recommending the HRRB.
Responsive Bid.
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2. To verify if the BAC 3. Look for the date the Did the BAC complete
completed the post- post-qualification was started the post-qualification
qualification process in not by the BAC and the date the process in not more
HRRB was declared and than seven (7) calendar
more than seven (7)
determine the number of days?
calendar days days between said dates.
If BAC completed post-
qualification in more
than seven (7) calendar
September 2, 2009:
days, was the extension
34.8. The post-qualification approved by the HOPE?
process shall be completed in not
days from the determination of
the Highest Rated Bid. In
exceptional cases, the post-
qualification period may be
extended by the Head of the
Procuring Entity, but in no case
shall the aggregate period exceed
thirty (30) calendar days.
INVOLVEMENT OF BAC OBSERVERS THROUGHOUT THE POST-QUALIFICATION PROCESS

INCLUDING THE ACTION ON MOTION(S) FOR RECONSIDERATION
invited Observers: BAC meeting on the selection Observers considering:
duly recognized private pool, check for information
group in a sector or discipline on the BACs evaluation in a. one representing
relevant to the procurement regard to: the COA?
at hand, and a non- the selection of the
government organization organization from which
(NGO) from the procuring the Observer will be b. One representing
entitys Pool of Observers; invited; the duly recognized
knowledge, experience or private group in a
b. that have:
expertise in procurement sector or discipline
or in the subject matter of relevant to the
the contract to be bid; procurement at
no actual or potential hand?
contract to be bid;
b.2. no actual or potential contract to be bid; and
conflict of interest in the conformed with other c. One representing a
contract to be bid; and relevant criteria non-government
b.3. conformed with other determined by the BAC. organization?
relevant criteria determined
by the BAC;
c. at least 3 calendar days d. With knowledge,
prior to the Post- experience or
qualification expertise in
procurement or in
Implementing Rules and Regulations the subject matter
(IRR) of RA 9184, as amended on of the contract to
September 2, 2009: be bid?
13. Observers
of the process, the BAC shall, in all e. With no actual or
stages of the procurement process, potential conflict of
invite, in addition to the interest in the
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representative of the COA, at least contract to be bid?
two (2) observers, who shall not
have the right to vote, to sit in its
proceedings where: f. Conformed with
a) At least one (1) shall come from a other relevant
duly recognized private group in a criteria determined
sector or discipline relevant to the by the BAC?
i)
ii) 2. From certified copies of Did the BAC invite the
iii) For consulting services, a the invitations to the observers at least 3
project-related professional Observers with evidence of days from the date of
organization accredited or duly receipt, compare the date of the post-qualification?
recognized by the Professional receipt with the 3-day
Regulation Commission or the minimum requirement.
limited to:
(1) PICE;
(PICPA); and
organization (NGO).

following criteria:
be bid;
to be bid; and

comments/observations of Qualification and the report observations of the
of the Observers check Observers?
the Observers
whether a deliberation was
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Implementing Rules and Regulations /observations of the
(IRR) of RA 9184, as amended on observers.
September 2, 2009:
proceedings;
procedure; and
to be bid.


appropriate audit
contract; auditee in regard to instances
of non-compliance.
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the contract;
c. etc. NOTE:
Also refer to the
invited in writing.

appropriate audit
recommendations.

of non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
Accounts
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XII. AWARD OF CONTRACT
1. To verify if the conditions/requirements and procedures for the award of contract were
adhered to by the procuring entity;
2. To verify if the award was made within the prescribed period;
approval of the contract were adhered to by the procuring entity.

2. BAC Resolution declaring the HRRB/SRRB and recommending award, approved
by the HOPE, with the following supporting documents:
b. Duly approved program of work and Cost Estimates,
c. Document issued by appropriate entity authorizing the procuring entity to
incur obligations for a specified amount,
d. Other pertinent documents required by existing laws, rules and/or the
3. Notice of Award signed by the HOPE, with date of release to and receipt by the
winning bidder;
4. Copy of the bid security of the winning bidder stamped received by the BAC
Secretariat;
5. Copy of the portions of the receiving records of the BAC, with information on
the date of submission of the Joint Venture Agreement (JVA), if the winning
bidder is a Joint Venture; and the date of posting of the performance security;
7. Copy of the complete set of contract documents duly signed and approved by
higher authorities;
10. Evidences of postings at the conspicuous place at the premises of the procuring
entity;
11. Copy of the Minutes of the BAC meeting on the selection of the Observer from
the pool;
12. Copy of reports of the BAC Observers;
13. Copy of the document with the HOPEs disapproval of the award and the
justifications thereto, duly received by the BAC;
14. In case of disapproval of the BACs recommendation for award, copy of the
document with the HOPEs instructions on the steps to be adopted by the BAC.

the Answer
1. To verify if the BAC 1. Compare the HRRB/ SRRB Did the BAC
recommended the bidder determined by the BAC recommend to the
with the Highest Rated indicated in the Minutes of HOPE the award of
BAC meeting on post- contract to the bidder
Responsive Bid (HRRB) or
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Commission on Audit
the Answer
Single Rated Responsive Bid qualification with the HRRB/ with the HRRB/SRRB?
(SRRB), if lone, to the HOPE SRRB recommended for
for award of contract award in the BAC Resolution

September 2, 2009:
bidder with the Highest Rated
Rated Responsive Bid after the
post qualification process has
been completed.
2. To verify if the BAC 2. From the TWG evaluation Did the BAC
recommended to the HOPE report with supporting recommend award of
the award of the contract to documents and duly reviewed the contract to the
by the BAC, and BAC bidder with the
the bidder with the
Resolution declaring the HRRB/SRRB at its:
HRRB/SRRB at its:
HRRB/SRRB and
recommending award, look a. submitted bid price
a. submitted bid price or its for information on the or its calculated bid
calculated bid price, contract amount price, whichever is
whichever is lower, or recommended by the BAC for lower?
award.
b. in the case of quality- or
based evaluation Then compare the
recommended contract price b. in the case of
procedure, submitted bid
with the submitted bid price quality-based
price or its negotiated and calculated bid price OR evaluation
price, whichever is lower. the negotiated price, in case procedure,
of quality based evaluation. submitted bid price
Implementing Rules and Regulations or its negotiated
(IRR) of RA 9184, as amended on price, whichever is
September 2, 2009: lower?
Bid passes all the criteria for post-
said bid as the Highest Rated
Responsive Bid, and recommend
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.
Philippine Bidding Documents (PBDs)

for the Procurement of Consulting
Services, 3rd Edition, (October 2009)
approved by the GPPB per GPPB
Resolution No. 06-2009 dated
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Commission on Audit
the Answer
September 30, 2009:
the Consultant with the HRB
passes all the criteria for post-
said bid as the consultant with
the Highest Rated and
Responsive Bid (HRRB), and
recommend to the Head of the
Procuring Entity the award of
contract to the said Consultant at
lower, subject to ITB Clause 29.3.
3. To verify if the BAC 3. From the BAC Chairmans Did the BAC submit the
submitted the following letter for the HOPE following documents to
documents to the HOPE with submitting the results and the HOPE with the
the documents pertaining to recommendation for
the recommendation, duly award:
award:
received by the Office of the
a. Resolution of the BAC HOPE, look for information
recommending award; on the documents submitted. a. Resolution of the
b. Abstract of Bids; BAC recommending
c. Duly approved program award?
of work and Cost
Estimates;
d. Document issued by b. Abstract of Bids?
appropriate entity
c. Duly approved
entity to incur program of work
obligations for a specified and Cost
amount; and Estimates?
e. Other pertinent
documents required by
existing laws, rules and/ d. Document issued by
or the procuring entity appropriate entity
authorizing the
concerned
procuring entity to
incur obligations for
a specified
amount?
September 2, 2009:
e. Other pertinent
documents required
bidder with the Highest Rated
by existing laws,
rules and/or the
Rated Responsive Bid after the
procuring entity
post qualification process has
concerned?
been completed.

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the Answer
recommending award;
Cost Estimates;
amount; and
concerned.
4. To verify if the HOPE, or 4. Determine the number of Did the HOPE approve
his/her duly authorized days from the date of receipt the BAC
official, approved the by the HOPE of the recommendation for
recommendation for award to award within the 7-
HRRB/SRRB recommended
the date of approval and calendar-day period (or
by the BAC for award within compare with the 7-day or 15-calendar-day period
7 calendar days from the 15-day period. for GOCCs/ GFIs)?
date of receipt of the
recommendation from the
BAC (15 calendar days for
GOCCs/GFIs)

September 2, 2009:
(15) calendar days.

verify if the Notice of Award bidder appearing in the Award issued to the
was issued to the winning Notice of Award with the winning bidder as
winning bidder per approved recommended by the
bidder immediately and
BAC Resolution. BAC and approved by
within the validity period of
the HOPE?
the bid security

(IRR) of RA 9184, as amended on 6. Compare the date of Was the Notice of
September 2, 2009: release of the Notice of Award as recommended
37.1.3. In case of approval, the Award with the date of by the BAC and
Head of the Procuring Entity shall approval of the BAC approved by the HOPE
immediately issue the Notice of Resolution recommending the immediately issued to
Award to the bidder with the award. the winning bidder?
Highest Rated Responsive Bid. In
the event the Head of the
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Commission on Audit
the Answer
Procuring Entity shall disapprove 6. Compare the date of the Was the Notice of
such recommendation, such release of the Notice of Award as recommended
disapproval shall be based only on Award with the expiry date of by the BAC and
valid, reasonable, and justifiable the bid validity period. approved by the HOPE
grounds to be expressed in issued to the winning
writing, a copy furnished the BAC. bidder within the bid
validity period of the bid
Annex C security?
PERIOD OF ACTION ON
PROCUREMENT ACTIVITIES
Stage 10

provided in Section 28 of this IRR.
6. To verify if the BAC 7. From the notices to the Did the BAC notify all
notified all the losing bidders losing bidders, look for the the losing bidders within
within the 7 or 15 calendar date of its receipt and the 7 or 15 calendar
compare with the 7-day or day period (same period
day period (same period
15-day requirement. provided for the HOPE
provided for the HOPE to
to approve/ disapprove
approve/ disapprove the BACs
8. Also compare the names the BACs Resolution)?
Resolution)
of the losing bidders notified
Implementing Rules and Regulations with those appearing in the
(IRR) of RA 9184, as amended on Abstract of Bids as Read.
September 2, 2009:

BAC shall notify all losing bidders
of its decision.
7. To verify if the BAC posted 9. Access the PhilGEPS Did the BAC post the
the Notice of Award within 3 website and the website of Notice of Award within
days from its issuance at the: the procuring entity, and 3 days from its issuance
conduct inspection of the at the:
area where the Notice of
b. website of the procuring Award is to be posted on the a. PhilGEPS website?
entity, and 3rd day from the issuance of
c. any conspicuous place in the Notice of Award to the b. website of the
the premises of the winning bidder. procuring entity? And
procuring entity.
c. any conspicuous
Implementing Rules and Regulations place in the premises
(IRR) of RA 9184, as amended on of the procuring
September 2, 2009: entity?
Secretariat, shall post, within
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Prepared by:
Commission on Audit
the Answer
three (3) calendar days from its
issuance, the Notice of Award in
the PhilGEPS, the website of the
7. To verify if the procuring 10. From the receiving Did the bidder submit
entity observed the following records of the BAC, compare the JVA within ten (10)
conditions for the execution the date of submission of the calendar days from
Joint Venture Agreement receipt of the notice of
of the contract:
(JVA) with the required 10 award?
a) Submission of valid joint
days from receipt of the
venture agreement, if Notice of Award.
applicable, within 10
days from receipt of the
Notice of Award by the
winning Joint Venture 11. From the receiving Was the performance
bidder, records of the BAC, compare security posted within
e) Posting of performance the date of posting of the ten (10) calendar days
security within ten (10) performance security with from receipt by the
the required 10 days from winning bidder of the
calendar days from
receipt of the Notice of Notice of Award & prior
receipt by the winning Award; also compare with to the signing of the
bidder of the Notice of the date of the signing of the contract?
Award & prior to the contract.
signing of the contract in
the required amount,
currency, form, issuing 12. Compare the amount, Was the performance
entity, and valid until the currency, form, issuing entity, security posted in the:
issuance by the procuring and validity period of the a. right amount?
performance security posted
entity of the final
by the winning bidder with b. right currency?
certificate of acceptance, the requirements of Sec 39.2
f) Signing of the contract of the Revised IRR of RA c. right form?
within the same ten (10) 9184.
day period provided that d. right issuing entity?
all the documentary
requirements are e. right validity period?
complied with,
g) Approval by higher
authority, if required, 13. Compare the date of Was the contract signed
signing of the contract with within 10 calendar days
within 15 days from
the required 10-day period from receipt of the
receipt (25 days for from receipt of the Notice of Notice of Award by the
GOCCs) Award. winning bidder?

(IRR) of RA 9184, as amended on 14. Compare the signatory If further approval by
September 2, 2009: (approval) in the contract higher authority is
37.1.4. Notwithstanding the with the authorized signatory required, was the
issuance of the Notice of Award, as required by relevant contract approved by
award of contract shall be subject regulations/policies and as appropriate approving
to the following conditions: shown by a copy of a valid authority or his/her duly
a) Submission of the following appointment or office order. authorized
documents within the representative?
prescribed period:
i) Valid JVA, if applicable,
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the Answer
within ten (10) calendar 15. Compare the date of Was the contract
days from receipt by the approval of the contract by approved by higher
bidder of the notice from higher authority with the 15- authority within 15
the BAC that the bidder has day-period from receipt (25 calendar days?
the Lowest Calculated days for GOCCs). (25 calendar days for
Responsive Bid, as the case GOCCs)?
may be; or
ii) In case of infrastructure
projects, valid PCAB license
and registration for the
type and cost of the
contract to be bid for
foreign bidders, within 30
calendar days from receipt
by the bidder of the notice
from the BAC that the
bidder has the LCRB, 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 (sic) as a pre-condition
to the notice of award.
h) Posting of performance
i) Signing of the contract as
this IRR;
j) Approval by higher authority,
if required, as provided in

performance by the winning
bidder of its obligations under the
contract in accordance with the
Bidding Documents, it shall post a
following schedule:
[AS AMENDED UNDER GPPB RESOLUTION
NO. 06-2009 DATED 30 SEPTEMBER 2009]
Form of Amount of
Performance Performance
to Percentage
of the Total
Contract Price
a) Cash, cashiers/
managers check
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the Answer
issued by a
Universal or Two percent
Commercial Bank (2%)
b) Bank draft/
guarantee or
credit issued by a
Universal or
Commercial Bank;
Provided, however,
that it shall be
confirmed or
authenticated by a
Universal or
Commercial Bank,
if issued by a
foreign bank.
c) Surety bond Five percent
callable upon (5%)
demand issued by
a surety or
insurance company
duly certified by
the Insurance
Commission as
authorized to issue
such security.
d) Any combination Proportionate
of the foregoing. to share of
form with
respect to total
amount of
security

37.2.1. The winning bidder shall
post the required Performance
Security and enter into contract
with the procuring entity within
ten (10) calendar days from
receipt by the winning bidder of
the Notice of Award.
winning bidder within the same
ten (10) day period provided that
all the documentary requirements
are complied with.

Higher Authority
authority is required, the
approving authority for the
contract or his duly authorized
representative shall be given
maximum of fifteen (15) calendar
days from receipt thereof to
approve or disapprove it.
However, for infrastructure
projects with an ABC of Fifty
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Commission on Audit
the Answer
Million Pesos (P50,000,000) and
below, the maximum period is five
(5) calendar days. In the case of
GOCCs, the concerned board or its
duly authorized representative
shall be given a maximum of
twenty-five (25) calendar days
from receipt thereof to approve or
disapprove it.
8. To verify if the contract is 16. Obtain from the BAC Are the contract
complete Secretariat or the Project documents complete,
Management Office or the consisting of the
Implementing Rules and Regulations Office responsible for project following:
(IRR) of RA 9184, as amended on implementation/ contract
September 2, 2009: execution for a copy of the a) Contract Agreement;
37.2.3. The following documents complete set of documents
shall form part of the contract: comprising the contract and
a) Contract Agreement; compare with the b) Bidding Documents;
b) Bidding Documents; requirements.
c) Winning bidders bid, including
the Eligibility requirements, c) Winning bidders bid,
Technical and Financial including the Eligibility
Proposals, and all other requirements,
documents/statements Technical and Financial
submitted; Proposals, and all other
d) Performance Security; documents/statements
e) Credit line in accordance with submitted;
the provisions of this IRR, if
applicable;
f) Notice of Award of Contract; d) Performance
and Security;
g) Other contract documents that
may be required by existing
laws and/or the procuring entity e) Credit line in
concerned in the Bidding accordance with the
Documents, such as the provisions of this IRR,
construction schedule and S- if applicable;
curve, manpower schedule,
equipment utilization schedule, f) Notice of Award of
construction safety and health Contract; and
program approved by the
Department of Labor and
Employment, and PERT/CPM for g) Other contract
infrastructure projects. documents that may
be required by existing
laws and/or the
procuring entity
concerned in the
Bidding Documents,
such as the
construction schedule
and S-curve,
manpower schedule,
equipment utilization
schedule, construction
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Commission on Audit
the Answer
safety and health
program approved by
the Department of
Labor and
Employment, and
PERT/CPM for
infrastructure projects?
INVOLVEMENT OF THE BAC OBSERVERS

invited Observers: BAC meeting on the selection Observers considering:
duly recognized private pool, check for information 1. one representing the
group in a sector or discipline on the BACs evaluation in COA?
relevant to the procurement regard to:
at hand, and a non- the selection of the 2. One representing the
government organization organization from which duly recognized
(NGO) from the procuring the Observer will be private group in a
entitys Pool of Observers; invited; sector or discipline
knowledge, experience or relevant to the
b. that have:
expertise in procurement procurement at
or in the subject matter of hand?
no actual or potential 3. One representing a
contract to be bid;
conflict of interest in the non-government
b.2. no actual or potential contract to be bid; and organization?
contract to be bid; and relevant criteria 4. With knowledge,
b.3. conformed with other determined by the BAC. experience or
relevant criteria determined expertise in
by the BAC; procurement or in
c. at least 3 calendar days the subject matter of
prior to the start of the the contract to be
activity bid?
Implementing Rules and Regulations 5. With no actual or

(IRR) of RA 9184, as amended on potential conflict of
September 2, 2009: interest in the
contract to be bid?
6. Conformed with
other relevant
stages of the
criteria determined
by the BAC?
sit in its proceedings where: 2. From certified copies of Did the BAC invite the
duly recognized private group in a Observers with evidence of days prior to the date of
sector or discipline relevant to the receipt, compare the date of the meetings?
i) minimum requirement.
ii)
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Prepared by:
Commission on Audit
the Answer
limited to:
(1) PICE;
(PICPA); and
organization (NGO).

the Securities
be bid;
to be bid; and

comments/observations of Qualification, the meetings observations of the
on the award of contract, and Observers?
the Observers
the report of the Observers
check whether a deliberation
was made on the comments
September 2, 2009:
observers.
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Prepared by:
Commission on Audit
the Answer
proceedings;
procedure; and
to be bid.


1. In case of disapproval by 1. If the HOPE disapproved In case of disapproval
the HOPE, verify if the: the recommendation for by the HOPE of the
a. grounds for such were award, look for the document BACs recommendation,
indicating the grounds for did the HOPE express
expressed in writing and
such with evidence of receipt the grounds for such
a copy furnished to the
of a copy thereof by the BAC. and furnished a copy to
BAC, and the BAC?
b. written instructions on the
subsequent steps to be
adopted were given to 2. Also look for the document In case of disapproval
the BAC indicating the instructions by the HOPE of the
given by the HOPE on the BACs recommendation,
Implementing Rules and Regulations subsequent steps to be did the HOPE give
(IRR) of RA 9184, as amended on adopted by the BAC. instructions to the BAC
September 2, 2009: on the subsequent
37.1.3. In the event the Head actions to be adopted?
of the Procuring Entity shall
disapprove such recommendation,
such disapproval shall be based
only on valid, reasonable, and
justifiable grounds to be
expressed in writing, a copy
furnished the BAC.
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Commission on Audit
the Answer

Services Volume 4, June 2006,

the HOPE shall state the
reasons for disapproval and
instruct the BAC on the
subsequent actions to be
adopted.
IN CASE OF FAILURE, REFUSAL, OR INABILITY BY THE WINNING BIDDER TO SUBMIT DOCUMENTS

AND ENTER INTO CONTRACT - FOR THE PROCUREMENT OF CONSULTING SERVICES
1. To verify if the BAC: 1. From the records of the Did the BAC disqualify
a. disqualified, BAC: the winning bidder who,
b. forfeited the bid security documenting the fact- through his fault, failed,
finding to establish if the refused or was unable
of and
winning bidder was to:
c. recommended the
responsible for his
imposition of sanctions to failure, refusal, or a. submit the
inability to: (a) to documents required
the winning bidder who,
submit the documents under Section 37.1
through his fault, failed, required under Section of the Revised IRR
refused or was unable: 37.1 of the Revised IRR of RA 9184?
of RA 9184, or (b) to
a. to submit the documents
make good its bid by or
required under Section entering into a contract
37.1 of the Revised IRR with the procuring entity, b. to make good its bid
of RA 9184, or (c) post the required by entering into a
or Performance Security contract with the
b. to make good its bid by within the period procuring entity?
entering into a contract stipulated in the Revised
with the procuring entity, IRR of RA 9184 or in the or
Bidding Documents;
or
documenting the c. post the required
deliberations/evaluation Performance
Performance Security conducted and the Security within the
within the period decisions arrived at; period stipulated in
stipulated in the Revised documenting the the Revised IRR of
IRR of RA 9184 or in the recommendations made RA 9184 or in the
Bidding Documents to the HOPE, Bidding
look for information on the: Documents?
Implementing Rules and Regulations disqualification of the
(IRR) of RA 9184, as amended on said bidder,
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Commission on Audit
the Answer
Did the BAC forfeit the
bid security of the
winning bidder who,
through his fault, failed,
refused or was unable
to:
a. submit the
documents required
under Section 37.1
of the Revised IRR
of RA 9184?
or
by entering into a
contract with the
procuring entity?
or
Performance
Security within the
the Revised IRR of
RA 9184 or in the
Bidding
Documents?
Did the BAC

recommend the
imposition of sanctions
to the winning bidder
who, through his fault,
failed, refused or was
unable to:
a. submit the
documents required
under Section 37.1
of the Revised IRR
of RA 9184?
or

by entering into a
contract with the
procuring entity?
or

Performance
Security within the
the Revised IRR of
RA 9184 or in the
Bidding
Documents?
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Prepared by: ---------------------------------
Commission on Audit
the Answer
bidder who, due to his fault, the disqualification of the winning bidder who,
winning bidder who, due to due to his fault,
refused, failed, or was
his fault, refused, failed, or refused, failed, or was
unable to enter into contract, was unable to enter into unable to enter into
post the required contract, post the required contract, post the
performance security, or performance security, or required performance
submit other required submit other required security, or submit
documents within the time documents within the time other required
stipulated, initiated and stipulated. documents within the
completed the post- time stipulated, initiate
qualification process on the Look also for information on and complete the post-
the conduct of post- qualification process on
bidder with the second
qualification on the bidder the bidder with the
Highest Rated Bid
with the second Lowest second Lowest
Calculated Bid. Calculated Bid?
September 2, 2009:
40.2. In the case of the failure,
refusal or inability of the bidder
Responsive Bid/Highest Rated
Responsive Bid to submit the
documents required under Section
37.1 of this IRR or to enter into
Performance Security, as provided NOTE:
in this Section, the BAC shall
disqualify the said bidder, and For the audit on the
shall initiate and complete the Post-Qualification for
post-qualification process on the the Procurement of
bidder with the second Lowest Consulting Services
Calculated Bid/Highest Rated Bid:
conducted by the BAC,
Provided, however, That in the
case of consulting services, the perform the audit
second Highest Rated Bid has activities pertaining
successfully undergone the to these procurement
negotiation stage in accordance activities in another
with Section 33.2.5 of this IRR. part of this Guide.
This procedure shall be repeated
until the Lowest Calculated
Responsive Bid/Highest Rated
Responsive Bid is determined for
award. However, if no bidder
passes post-qualification, the BAC
shall declare the bidding a failure
and conduct a re-bidding with re-
advertisement. Should there occur
another failure of bidding after the
concerned may enter into a
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Prepared by:
Commission on Audit
the Answer
bidder with the Single Rated the disqualification of the winning bidder with the
winning bidder with the SCRB SRRB who, due to his
Responsive Bid (SRRB) who,
who, due to his fault, fault, refused, failed, or
due to his fault, refused, refused, failed, or was unable was unable to enter into
failed, or was unable to enter to enter into contract, post contract, post the
into contract, post the the required performance required performance
required performance security, or submit other security, or submit
security, or submit other required documents within other required
required documents within the time stipulated. documents within the
the time stipulated, declared time stipulated,
the bidding a failure and Look also for information on
the declaration of the bidding a. declare the bidding a
a failure and the conduct of a failure?
re-bidding with re-
posting, as provided for in advertisement. and
Sections 21 and 25 of the b. conduct a re-bidding
Revised IRR of RA 9184 with re-advertisement
and/or posting?
40.3. In the case of failure, refusal
or inability of the bidder with the
Single Calculated/Rated NOTE:
Responsive Bid to submit the For the audit on the
documents required under Section Failure of Bidding for
37.1 of this IRR or to enter into the Procurement of
Consulting Services
Performance Security, as provided
in this Section, the BAC shall and on the
disqualify the said bidder, and Competitive/ Public
shall declare the bidding a failure Bidding for the
and conduct a re-bidding with re- Procurement of
advertisement and/or posting, as Consulting Services,
provided for in Sections 21 and 25 perform the audit
of this IRR. Should there occur activities pertaining
another failure of bidding after the to these procurement
activities in other
concerned may enter into a parts of this Guide.

appropriate audit
contract; auditee in regard to instances
of non-compliance.
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Commission on Audit
the Answer
the contract;
c. etc. NOTE:
invited in writing.

appropriate audit
recommendations.

of non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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Commission on Audit
XIII. FAILURE OF BIDDING
DECLARED BY THE BIDS AND AWARDS COMMITTEE (BAC)
A. AUDIT OBJECTIVE:


5. Documentary evidences that the bidder with the Highest Rated Responsive Bid refused, without
justifiable cause, to accept the award of contract, and no award was made in accordance with
Section 40 of the RA 9184 and Revised IRR;

the Answer
a) No bids were received;
a) No bids were received; or
b) All prospective bidders a) No bids were
b) All prospective bidders were declared ineligible; received?
were declared ineligible; or c) all bids failed to comply
c) All bids failed to comply with all the bid b) All prospective
with all the bid requirements, bidders were
requirements, or d) all bids failed post- declared ineligible?
d) all bids failed post- qualification,
qualification, or d) the bidder with the Or
e) the bidder with the Lowest Calculated
Responsive Bid refused, c) All bids failed to
Highest Rated Responsive
without justifiable cause, comply with all the
Bid refused, without
to accept the award of bid requirements?
justifiable cause, to accept contract, and no award
the award of contract, and was made in accordance Or
no award was made in with Section 40 of the RA
accordance with Section 40 9184 and Revised IRR. d) all bids failed post-
of the RA 9184 and qualification?
Revised IRR
Or
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Prepared by:
Commission on Audit
the Answer
.
Implementing Rules and Regulations e) the bidder with the
(IRR) of RA 9184, as amended on Lowest Calculated
September 2, 2009: Responsive Bid
refused, without
35.1. The BAC shall declare the
justifiable cause, to
bidding a failure when:
accept the award of
a) No bids are received;
contract, and no
b) All prospective bidders are
award was made in
declared ineligible;
accordance with
c) All bids fail to comply with all the
Section 40 of the RA
bid requirements or fail post-
9184 and Revised
IRR?
Calculated Responsive
Bid/Highest Rated Responsive
Bid refuses, without justifiable
cause, to accept the award of
contract, and no award is made
in accordance with Section 40 of
the Act and this IRR.
2. To verify if the BAC 2. From the minutes of the Did the BAC determine
determined the reason for the BAC meetings held for the the reason for the failed
failed bidding by conducting a purpose, look for bidding by conducting a
information on the review mandatory review and
and evaluation conducted on evaluation of the:
evaluation of the : the: (a) terms, (b)
a. terms, conditions, (c) specifications,
b. conditions, and (d) cost estimates and a. terms in the Bidding
c. specifications, the Documents?
d. cost estimates recommendations/decisions
in the Bidding Documents made possible
revisions/adjustments. b. conditions in the
Implementing Rules and Regulations Bidding Documents?
September 2, 2009:
35.2. In order to determine the c. specifications in the
reason for the failed bidding, the Bidding Documents?
review and evaluation of the terms, d. cost
conditions, and specifications in the estimates?
cost estimates.
concerned units/officials of BAC meetings held for the concerned units/officials
the procuring entity, revised purpose and other records of the procuring entity,
of the procuring entity, look revised the following as
for information on the a result of the review
revisions/adjustments made and evaluation
conducted: on the (a) terms, (b) conducted:
a. terms, conditions, (c) specifications,
b. conditions, (d) ABC and approvals made a. terms in the Bidding
c. specifications, thereon. Documents?
d. Approved Budget for the
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the Answer
Contract (ABC); b. conditions in the
had them approved; and Bidding Documents?
c. specifications in the
Bidding Documents?
posting
d. cost estimates?
September 2, 2009: 4. From the records of the Did the BAC conduct a
35.2. In order to determine the BAC look for information on re-bidding?
reason for the failed bidding, the the re-bidding conducted.
cost estimates.
35.3. Based on its findings, the NOTE:

BAC shall revise the terms,
conditions, and specifications, and if For the audit on the
necessary, adjust the ABC, subject re-bidding conducted
to the required approvals, and perform the audit
using the portion of
provided for in Section 21.2 of this this Guide on
IRR Competitive/Public
Bidding for the
35.4. All bidders who have Procurement of
initially responded to the Invitation Consulting Services.
to Bid/Request for Expression of
Interest and have been declared
eligible or short listed in the previous
biddings shall be allowed to submit
new bids. The BAC shall observe the
bidding(s).
35.5. Should there occur a

second failure of bidding, the
procuring entity may resort to
negotiated procurement, as provided
for in Section 53.1 of this IRR.
duly recognized private group from the pool, check for 1. one representing the
in a sector or discipline information on the BACs COA?
at hand, and a non- the selection of the 2. One representing the
government organization organization from which specific relevant the
(NGO) from the procuring the Observer will be duly recognized
entitys Pool of Observers; invited; private group in a
knowledge, experience or sector or discipline
b. that have:
expertise in procurement relevant to the
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the Answer
expertise in procurement or in or in the subject matter procurement at
the subject matter of the of the contract to be bid; hand?
contract to be bid; no actual or potential
b.2. no actual or potential conflict of interest in the 3. One representing a
conflict of interest in the contract to be bid; and non-government
contract to be bid; and conformed with other organization?
b.3. conformed with other relevant criteria
relevant criteria determined by determined by the BAC. 4. With knowledge,
the BAC; experience or
expertise in
procurement or in
activity the contract to be
Implementing Rules and Regulations bid?
September 2, 2009: 5. With no actual or
potential conflict of
Section 13. Observers interest in the
13.1. To enhance the transparency of contract to be bid?
stages of the 6. Conformed with
procurement process, invite, in other relevant
addition to the representative of the criteria determined
COA, at least two (2) observers, who by the BAC?
in its proceedings where: 6. From certified copies of Did the BAC invite the
duly recognized private group in a Observers with evidence of days from the date of
sector or discipline relevant to the receipt, compare the date of the bid evaluation?
i) minimum requirement.
ii)
limited to:
(1) PICE;
(PICPA); and
organization (NGO).

the Securities
following criteria:
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the Answer
be bid;
to be bid; and

appropriate audit
the contract;
c. etc.
NOTE:
Implementing Rules and Also refer to the
Regulations (IRR) of RA 9184, as OFFENSES AND
amended on September 2, 2009: PENALTIES portion of
Observers shall be invited at least this Audit Guide.
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
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Commission on Audit
the Answer
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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Commission on Audit
XIV. FAILURE OF BIDDING DECLARED BY THE HOPE
A. AUDIT OBJECTIVE:
To verify if the conditions/requirements for the declaration of failure of bidding were adhered to by

1. Documents on the declaration of failure of bidding by the HOPE with supporting documents on
the existence of the grounds used to justify the said declaration that:
2. there was prima facie evidence of collusion between appropriate public officers or employees
of the procuring entity, or
3. there was prima facie evidence of collusion between appropriate public officers or employees
of the procuring entity, or
4. there was prima facie evidence of collusion between or among the bidders themselves,
6. there was prima facie evidence of any act which restricted, suppressed or nullified competition,
or
8. the award of the contract will not redound to the benefit of the GOP, for justifiable and
reasonable grounds such as the physical and economic conditions have significantly changed so
as to render the project no longer economically, financially, or technically feasible, as
determined by the Head of the Procuring Entity, or
reasonable grounds such as the project is no longer necessary as determined by the Head of
the Procuring Entity, or
reasonable grounds such as the source of funds for the project has been withheld or reduced
through no fault of the procuring entity.

of the
Answer
1. To verify if the HOPE 1. From the documents on Did the HOPE declare a
declared a failure of bidding the declaration of failure of failure of bidding for
for reason that: bidding by the HOPE, look reason that:
a. no funds available;
reason for such declaration. a. no funds available?
b. there is prima facie
evidence of collusion Or
between:
b.1. appropriate public b. there was prima facie
officers or employees of evidence of collusion
the procuring entity, or between
b.2. between the BAC and appropriate public
any of the bidders, or officers or
employees of the
b.3. among the bidders
procuring entity?
themselves, or
b.4. a bidder and a third Or
party,
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of the
Answer
restricts, suppresses or c. there was prima
nullifies or tends to facie evidence of
collusion between
restrict, suppress or nullify
the BAC and any of
competition; the bidders?
or
c. the BAC is found to have or
failed in following the
prescribed bidding d. there was prima
procedures; facie evidence of
or collusion between
d. the award of the contract or among the
bidders themselves?
will not redound to the
benefit of the GOP, for
Or
justifiable and reasonable
grounds such as: (i) if the e. there was prima
physical and economic facie evidence of
conditions have collusion between a
significantly changed so as bidder and a third
to render the project no party?
longer economically,
Or
financially, or technically
feasible, as determined by f. there was prima facie
the Head of the Procuring evidence of any act
Entity; (ii) if the project is which restricted,
no longer necessary as suppressed or
determined by the Head of nullified competition?
the Procuring Entity; and
(iii) if the source of funds or
for the project has been
withheld or reduced
g. the BAC was found
through no fault of the to have failed in
procuring entity. following the
prescribed bidding
Implementing Rules and Regulations procedures?
September 2, 2009: or
Section 41. The Head of the h. the award of the

Procuring Entity reserves the right to contract will not
reject any and all bids, declare a redound to the
failure of bidding, or not award the benefit of the GOP,
contract in the following situations: for justifiable and
a) If there is prima facie evidence of reasonable grounds
collusion between appropriate such as the physical
public officers or employees of the and economic
procuring entity, or between the conditions have
BAC and any of the bidders, or if significantly changed
the collusion is between or among so as to render the
the bidders themselves, or project no longer
between a bidder and a third economically,
party, including any act which financially, or
restricts, suppresses or nullifies or technically feasible,
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Prepared by:
Commission on Audit
of the
Answer
tends to restrict, suppress or as determined by the
nullify competition; Head of the
b) If the BAC is found to have failed Procuring Entity?
in following the prescribed bidding
procedures; or Or
c) For any justifiable and reasonable
ground where the award of the i. the award of the
contract will not redound to the contract will not
benefit of the GOP, as follows: (i) redound to the
if the physical and economic benefit of the GOP,
conditions have significantly for justifiable and
changed so as to render the reasonable grounds
project no longer economically, such as the project is
financially, or technically feasible, no longer necessary
as determined by the Head of the as determined by the
Procuring Entity; (ii) if the project Head of the
is no longer necessary as Procuring Entity?
determined by the Head of the
Procuring Entity; and (iii) if the Or
source of funds for the project has
been withheld or reduced through j. the award of the
no fault of the procuring entity. contract will not
redound to the
benefit of the GOP,
for justifiable and
reasonable grounds
such as the source
of funds for the
project has been
withheld or reduced
through no fault of
the procuring entity?

appropriate audit
the contract;
c. etc.
NOTE:
Also refer to the
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Commission on Audit
of the
Answer
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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Commission on Audit
ALTERNATIVE METHODS OF PROCUREMENT
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Commission on Audit
LIMITED SOURCE BIDDING

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Prepared by:
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LIMITED SOURCE BIDDING FOR CONSULTING SERVICES
Limited Source Bidding, otherwise known as selective bidding, is a method of procurement of

consulting services that involves direct invitation to bid by the procuring entity from the list of pre-
selected consultants with known experience and proven capability on the requirements of the particular
contract.
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Limited Source Bidding was in accordance with
the rules and regulations

3. list of consultants who can undertake the highly specialized type of consulting service;
5. BAC Resolution recommending the alternative method of procurement: Limited Source Bidding,
duly approved by the HOPE.

Audit Sub-objective
Answer
to justify Limited Source the original mode of Did the BAC validate
Bidding: procurement per APP the existence of the
b.1. Procurement of highly was public bidding but condition that only a
specialized type of cannot be ultimately few consultants are
consulting services where pursued and of the known to be
existence of the available to justify
only a few consultants are
conditions to justify Limited Source
known to be available,
Limited Source Bidding?
such that resorting to the Bidding.
public bidding method will
not likely result in any
additional consultants
participating in the
bidding; or
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Commission on Audit
Audit Sub-objective
Answer
September 2, 2009:
48.2. In accordance with Section 10
bidding as the general mode of
procurement and shall see to it that
the procurement program allows
sufficient lead time for such public
bidding. Alternative methods shall be
exceptional cases provided for in this
Rule.

the HOPE.
49.1. Limited Source Bidding,
otherwise known as selective bidding,
is a method of procurement of
consulting services that involves
direct invitation to bid by the
procuring entity from the list of pre-
selected consultants with known
experience and proven capability of
the requirements of the particular
contract. This alternative method of
procurement may be employed under
the following condition:
a) Procurement of highly specialized

types of consulting services only a
few consultants are known to be
available, such that resorting to the
public bidding method will not likely
result in any additional consultants
participating in the bidding;

mode of procurement: Limited recommending Limited alternative mode of
Source Bidding as the procurement: Limited
Source Bidding to the HOPE,
method of procurement, Source Bidding to the
and look for the approval of HOPE?
b. the HOPE approved the the HOPE.
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
approve Limited
Implementing Rules and Regulations Source Bidding as the


the HOPE.

contract;
c. etc.
NOTE:
recommendations
Also refer to the
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Commission on Audit
Audit Sub-objective
Answer
invited in writing.

recommendations
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion

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Prepared by:
Commission on Audit
Limited Source Bidding for Consulting Services
NOTE:
Since the requirement of regulations is for the Procuring Entity to prepare the
Bidding Documents including the Request for Expression of Interest (indicating
therein the method of procurement to be used) and the technical specifications, in
accordance with the procedures laid down in the IRR, the Generic Procurement
Manual and the Philippine Bidding Documents (PBDs), the audit pertaining to
Bidding Documents shall be as indicated in the Audit Guide for Bidding Documents in
Competitive/Public Bidding for Consulting Services.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the consultants
appearing in the pre-selected list. All other procedures for competitive bidding shall be
undertaken, except for the advertisement Request for Expression of Interest under Section
21.2.1 of the Revised IRR of RA 9184.
NOTE:
Since the requirement of regulations is for the Procuring Entity to conduct Pre-
Procurement Conference in accordance with the procedures laid down in the IRR,
the Generic Procurement Manual and the Philippine Bidding Documents (PBDs), the
audit pertaining to Pre-Procurement Conference shall be as indicated in the Audit
Guide for Pre-Procurement Conference in Competitive/Public Bidding for Consulting
Services.
Audit Criteria:
undertaken, except for the advertisement of Request for Expression of Interest under Section
IV. POSTING OF THE REQUEST FOR EXPRESSION OF INTEREST
NOTE:
Since the requirement of regulations is for the Procuring Entity to post the Request
for Expression of Interest in accordance with the procedures laid down in the IRR,
the Generic Procurement Manual and the Philippine Bidding Documents (PBDs), the
audit pertaining to posting of the Request for Expression of Interest shall be as
indicated in the Audit Guide for posting of the Request for Expression of Interest in
Competitive/Public Bidding for Consulting Services.
Audit Criteria:
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Commission on Audit
Limited Source Bidding for Consulting Services
V. PRE-SELECTION AND INVITATION OF CONSULTANTS
A. AUDIT OBJECTIVES
1. To verify if the BAC conducted the pre-selection of consultants as required by regulations;
2. To verify if the BAC invited pre-selected consultants as required by regulations.

1. List maintained by the relevant government authority that has expertise in the type of
consulting service;
2. BAC evaluation report with supporting documents on the pre-selection of consultants;
3. List of Pre-Selected Consultants;
prescribed by the foreign government/ foreign or international financing institution, if applicable
for the first day and at least the last day of posting;
premises of the procuring entity for 7 calendar days;
6. Request for Expression of Interest duly received by the consultants;

the Answer
1. To verify if the BAC: 1. From the BAC evaluation Did the BAC in the
a. used the list maintained by report with supporting pre-selection of
the relevant government documents (including a consultant:
copy of the list used by the
authority,
BAC in pre-selecting a. use the list
b. took into account
consultants) on the pre- maintained by
experience and past selection of consultants, the the relevant
performance on similar minutes of BAC meetings government
contracts, conducted for the purpose, authority?
c. took into account look for information on the
capabilities with respect to use of the list and b. took into
personnel, consideration of capabilities account
d. took into account and experience in the pre- experience and
selection process. past
capabilities with respect to
performance on
equipment similar
e. took into account contracts?
capabilities with respect to
financial position c. took into
in the pre-selection of account
consultants capabilities with
respect to
Implementing Rules and Regulations personnel?
September 2, 2009: d. took into
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Commission on Audit
the Answer
49.2. The pre-selected account
consultants shall be those appearing capabilities with
in a list maintained by the relevant respect to
government authority that has equipment?
expertise in the type of procurement
concerned. The list of pre-selected e. took into
consultants shall be updated account
periodically. A copy of the list shall capabilities with
be submitted to, and maintained respect to
updated with, the GPPB. financial
position?
49.3. The pre-selection shall be
based upon the capability and
resources of the bidders to perform
the contract taking into account their
experience and past performance on
similar contracts, capabilities with
respect to personnel, equipment or
manufacturing facilities, and
financial position. Pre-selection shall
be done in accordance with the
procedures provided in the GPMs.
2. To verify if the BAC sent 2. Compare the names of Did the BAC send
invitations to bid to all the consultants per copies of Request for
pre-selected consultants Request for Expression of Expression of
Interest duly received by Interest to all the
them with the consultants pre-selected
in the list of pre-selected consultants?
consultants.
September 2, 2009:
49.4. The BAC of the concerned
procuring entity shall directly invite
all the consultants appearing in the
pre-selected list.
6.2. Once issued by the GPPB, the

use of the Generic Procurement
Manuals (GPMs), Philippine Bidding

Procurement of Consulting Services,
Volume 4
How is limited source bidding
conducted?
The following steps are
undertaken in procuring through the
limited source bidding method:
7. The BAC Secretariat sends the
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Prepared by:
Commission on Audit
the Answer
to the pre-selected consultants.
The Request for Expression of
Interest is sent to ALL
consultants in the list.
3. To verify if the BAC 3. Ahead of any Did the BAC post

Secretariat post the Request procurement, request the the Request for
for Expression of Interest in: BAC Secretariat for advance Expression of
information on the first day Interest
a. The PhilGEPS,
of any posting. continuously in
b. the website of the the:
procuring entity, 4. On the first day of posting
c. electronic procurement access the PhilGEPS website, 1. PhilGEPS
service provider, if any, the website of the procuring website for 7
for a period of 7 calendar entity concerned, if calendar days
days prior to the opening of available, and website starting on the
the bids prescribed by the foreign date of
government/ foreign or advertisement?
Implementing Rules and Regulations international financing
(IRR) of RA 9184, as amended on institution, if applicable. 2. website of the
September 2, 2009: Print the page where the procuring entity
6.2. Once issued by the GPPB, the notice was posted (to form concerned, if
use of the Generic Procurement part of the audit evidences). available, for 7
Manuals (GPMs), Philippine Bidding calendar days
Documents (PBDs), and other 5. Access the websites at starting on the
standard forms shall be mandatory random during the 7-day date of
upon all Procuring Entities. However, period to verify the postings. advertisement?
particular needs of the procuring 3. website
entity, modifications may be made, prescribed by the
particularly for major and specialized foreign
procurement, subject to the government/
approval of the GPPB. foreign or
international
Manual of Procedures for the financing
Procurement of Consulting Services, institution, if
Volume 4 applicable, for 7
How is limited source bidding calendar days
conducted? starting on the
The following steps are date of
undertaken in procuring through the advertisement?

purposes the Request for
Expression of Interest in a. The
PhilGEPS; b. the website of the
procuring entity and its electronic
procurement service provider , if
any, and c. any conspicuous place
bids.
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the Answer
4. To verify if the BAC 6. Ahead of any Did the BAC post
Secretariat post the Request procurement, request the the Request for
for Expression of Interest in BAC Secretariat for advance Expression of
information on the first day Interest
any conspicuous place in the
of any posting. continuously at any
conspicuous place
entity for a period of 7 7. Conduct ocular reserved for the
calendar days prior to the inspection on the first day of purpose in the
opening of the bids posting. premises of the
procuring entity for
Implementing Rules and Regulations 8. Repeat the ocular 7 calendar days, as
(IRR) of RA 9184, as amended on inspections (may be at certified by the
September 2, 2009: random) during the 7-day head of the BAC
6.2. Once issued by the GPPB, the period to verify the postings. Secretariat of the
use of the Generic Procurement procuring entity?
Manuals (GPMs), Philippine Bidding 9. Request for the
Documents (PBDs), and other certification of the head of
standard forms shall be mandatory the BAC Secretariat

Volume 4
How is limited source bidding
conducted?
The following steps are
undertaken in procuring through the

purposes the Request for
Expression of Interest in a. The
PhilGEPS; b. the website of the
procuring entity and its electronic
procurement service provider , if
any, and c. any conspicuous place
bids.

appropriate audit
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Commission on Audit
the Answer
the contract;
c. etc.
OFFENSES AND
this Audit Guide.
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
NOTE:
Since the requirement of regulations is for the Procuring Entity to undertake all
other procedures for competitive bidding shall be undertaken, except for the
advertisement of Request for Expression of Interest, the audit pertaining to other
phases/activities in Limited Source Bidding shall be as indicated in the Audit Guide
for Competitive/Public Bidding for Consulting Services.
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Audit Criteria:
54.1. Splitting of Government Contracts is not allowed. Splitting of Government Contracts

means the division or breaking up of GOP contracts into smaller quantities and amounts, or
dividing contract implementation into artificial phases or sub-contracts for the purpose of
evading or circumventing the requirements of law and this IRR, specially the necessity of
public bidding and the requirements for the alternative methods of procurement.
54.5. Performance and warranty securities, as prescribed in Sections 39 and 62 of this IRR,
shall be submitted for contracts acquired through the alternative methods of procurement,
except for Shopping under Section 52 and Negotiated Procurement under Sections 53.2
emergency cases), 53.9 (small value procurement), 53.10 (lease of real property), and 53.13
(UN agencies).
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Commission on Audit
OF CONSULTING SERVICES
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Prepared by:
Commission on Audit
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
Negotiated Procurement is a method of procurement for consulting services whereby the

procuring entity directly negotiates a contract with a technically, legally, and financially capable
consultant in any of the following cases: (1) Two Failed Biddings, (2) Emergency Cases, (3) Take-Over
of Contracts, (4) Adjacent or Contiguous, (5) Agency-to-Agency, (6) Highly-Technical Consultants,
(7) Small Value Procurement.
Two Failed Biddings Where there has been failure of public bidding for the second time.
I. PREPARATORY ACTIVITY: REGISTRY OF CONSULTANTS
The Registry of Consultants is to be maintained and constantly updated by the Procuring Entity.
A. AUDIT OBJECTIVE
To determine if the Procuring Entity developed and maintained a Registry of Consultants

Documentation of the System for the Registry of Consultants maintained by the Procuring
Entity

the Answer
1. To verify if the procuring 1. Obtain a copy of the registry Did the Procuring
entity maintained a registry of Consultants maintained by Entity maintain a
of Consultants as basis for the Procuring Entity. registry of
Consultants as
selecting the Consultants for
basis for selecting
negotiations
the Consultants for
negotiations?
September 2, 2009:
Consultants as basis for
selecting the Consultants for
negotiations.

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Prepared by:
Commission on Audit
the Answer
b. validity of any payment to non-compliance.
the contract;
c. etc.
NOTE:
Audit Guide.
invited in writing.

non-compliance.
NOTE:
Also refer to the
OFFENSES AND
Audit Guide.

Accounts
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Prepared by:
Commission on Audit
Negotiated Procurement of Consulting Services
Bidding documents are documents issued by the Procuring Entity to provide prospective bidders
all the necessary information that they need to prepare their bids.
A. AUDIT OBJECTIVE:
To verify if after the Procuring Entitys conduct of mandatory review due to two (2) failed biddings,
the Bidding Documents for the specific procurement followed the standard forms and manuals
prescribed by the Government Procurement Policy Board (GPPB)
Document needed for evaluation:

1. The procuring entitys Customized Bidding Documents for Consulting Services;

of the
Answer
1. To verify if the procuring 1. From the Did the BAC declare two (2)
entity conducted a documentation of the failed biddings?
mandatory review of the earlier two (2) biddings
conducted, look for
terms, conditions,
declaration that there
estimates on the basis of have been two (2) failed
which the BAC revised and biddings.
agreed on the:
a. minimum technical
specifications, 2. From the TWG Did the Procuring Entity
b. adjusted the ABC evaluation report with conduct a mandatory review
supporting documents of the terms, conditions,
Implementing Rules and and duly reviewed by the specifications, and cost
Regulations (IRR) of RA 9184, as BAC, minutes of the estimates after two failed
amended on September 2, 2009: meetings of the BAC, and biddings?
53.1.1. After conduct of the BAC Resolutions, look for
mandatory review of the evidences of the conduct
terms, conditions, of the mandatory review
specifications, and cost of the terms, conditions,
estimates, as prescribed in specifications and cost
Section 35 of this IRR, the BAC estimates by concerned
shall revise and agree on the Offices of the Procuring
minimum technical Entity.
specifications, and if
necessary, adjust the ABC, 3. From the minutes of Did the BAC revise and agree
subject to the required the BACs meetings and on the:
approvals. However the ABC BAC Resolutions, look for
cannot be increased by more information on the a. minimum technical
than twenty percent (20%) of deliberation, revision and specifications?
the ABC for the last failed agreement on the
bidding. minimum technical b. Revised ABC?
specifications and
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Prepared by:
Commission on Audit
of the
Answer
adjusted ABC; and Did the BAC submit the
recommendation to the revised minimum technical
HOPE for approval. specifications to the HOPE
for approval?
Did the BAC submit the

adjusted ABC to the HOPE
for approval?
4. From the minutes of Did the BAC ensure that the

the BACs meetings and adjustment in the ABC was
BAC Resolutions, look for at a maximum of 20% of the
information on the BACs ABC for the second failed
evaluation to ensure that bidding?
the adjustment in the
ABC was at a maximum
of 20% of the ABC for
the second failed bidding.

1. To verify if the Bidding 1. If the procuring entity Are the Bidding Documents/
Documents for the specific adopted customized Information complete:
procurement include the Bidding Documents and
the results of the earlier a. Approved Budget for the
information and are
validation of this element Contract?
according to the forms showed that these are
indicated in the Customized compliant with the b. Request for Submission of
Bidding Documents Philippine Bidding Price Quotation?
approved by the GPPB or Documents for the
the Philippine Bidding Procurement of Goods c. Eligibility Requirements?
Documents for the and Section 17.1 of the
Procurement of Consulting Implementing Rules and d. Instruction to Bidders,
Services, 3rd Edition Regulations of RA 9184, including
secure from the BAC - scope of bid?
(October 2009) issued by
Secretariat duly certified
the GPPB and Section 17 of
copies of the Bidding - documents
the Implementing Rules Documents for the specific comprising the bid?
and Regulations of RA 9184 procurement and compare
as amended on September these with the customized - criteria for eligibility?
2, 2009: Bidding Documents of the
c. Approved Budget for the procuring entity. - bid evaluation
Contract; methodology/
b. Request for Submission If the customized criteria?
Bidding Documents are
of Price Quotation;
not compliant, compare - post-qualification
the procurement-specific methodology?
d. Instruction to Bidders, Bidding Documents with
including scope of bid, the Philippine Bidding - date of the pre-bid
documents comprising Documents for the conference, if
the price quotation, Procurement of Consulting applicable?
criteria for eligibility, Services issued by the
price quotation GPPB.
evaluation - time of the pre-bid
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Commission on Audit
of the
Answer
methodology/criteria in conference?
and post-qualification, - Place of the pre-bid
conference?
as well as the date, time
and place of the pre-bid - Deadline for submission
conference (where of price quotations?
of price quotations and - Place of submission of
opening of price price quotations?
quotations;
d.1. including: Following - Date of opening of
completion of the price quotations?
negotiations, the BAC
- Time of opening of
shall request all
price quotations?
suppliers remaining
in the proceedings to - Place of opening of
submit on a specified price quotations?
date, a best and final
offer with respect to - following completion of
all aspects of the the negotiations,
proposals, and requesting all suppliers
remaining in the
d.2. selection of the
proceedings to submit
successful offer on on a specified date, a
the basis of such best best and final offer with
and final offers respect to all aspects
meeting the minimum of the proposals?
technical
requirements and not - selection of the
exceeding the ABC; successful offer on the
e. Scope of work, where basis of such best and
final offers meeting the
applicable;
minimum technical
f. Form of Price Quotation;
requirements and not
h. Completion Schedule; exceeding the ABC?
i. Form, Amount, and
Validity of Performance e. Scope of work?
Security and Warranty;
1. Form of Contract and f. Form Price Quotation?
General and Special
Conditions of Contract; g. Completion Schedule?
h. Form of Contract and

General and Special
Conditions of Contract?
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Prepared by:
Commission on Audit
of the
Answer
17.1. The Bidding Documents Are the Bidding Documents
shall be prepared by the in the required form:
standard forms and manuals a. Invitation to Bid?
a. Approved Budget for the b. Instructions to Bidders?
Contract;
b. Request for Submission of c. Bid Data Sheet?
Price Quotation;
c. Eligibility Requirements; d. General Conditions of the
d. Instruction to Bidders, Contract?
documents comprising the bid, e. Special Conditions of
criteria for eligibility, bid Contract?
evaluation
methodology/criteria in f. Schedule of
accordance with the Act, and Requirements?
the date, time and place of the g. Technical Specifications?
pre-bid conference (where
applicable), submission of bids h. Bidding Forms?
and opening of bids;
applicable;
f. Plans/Drawings and Technical
Specifications;
g. Form of Bid, Price Form, and
List of Goods;
h. Completion Schedule;
i. Form, Amount, and Validity
[REVISED BY the Revised IRR of
RA 9184, item 54.4. Except for
Limited Source Bidding under
Section 49 of this IRR,
submission of bid securities may
be dispensed with.]
j. Form, Amount, and Validity of
Performance Security and
Warranty;
[Also per Revised IRR of RA
9184, Section 54.5.
Performance and warranty
securities, as prescribed in
Sections 39 and 62 of this
IRR,
shall be submitted for
contracts acquired through
the alternative methods of
procurement, except for
Shopping under Section 52
under Sections 53.2
(emergency cases), 53.9
(small value procurement),
53.10 (lease of real property),
and 53.13 (UN agencies).]
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Prepared by:
Commission on Audit
of the
Answer
and
k. Form of Contract and General
Contract.
53.1.4. Following completion of

the negotiations, the procuring
entity shall request all suppliers,
contractors, or consultants
remaining in the proceedings to
submit, on a specified date, a
best and final offer with respect
to all aspects of their proposals.
53.1.5. The procuring entity

shall select the successful offer
on the basis of such best and
final offers which should meet
the procuring entitys minimum
technical requirements and
should not exceed the ABC.
GPPB Resolution No. 05-2009

Bidding Documents Third
Edition for all of their

instances of non- non-compliance to Appropriate Audit Working Papers
and outputs including the Also determine if
b. validity of any payment non-compliance.
of the contract;
c. etc.
NOTE:
Also refer to the
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Commission on Audit
of the
Answer
OFFENSES AND
PENALTIES portion
2009:
Observers shall be invited at
provided that they have

instances of non- non-compliances to Appropriate Audit Working Papers
appropriate audit
recommendations.
recommendations
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion

Accounts
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Commission on Audit
After Two Failed Biddings
specifications, the Approved Budget for the Contract (ABC), the applicability and appropriateness of the
recommended method of procurement and the related milestones, the bidding documents, and
availability of the pertinent budget release for the project.
Conference.

Secretariat;
2. Request for Submission of Price Quotation;

Audit Sub-objective
Answer
1. To verify if the BAC conducted 1. Secure from the BAC Did the BAC conduct
the Pre-Procurement Conference Secretariat a duly certified the Pre-Procurement
prior to the posting or the copy of the Minutes of Conference prior to
issuance of the Invitation or Pre-Procurement the posting or
Conference and compare issuance of the
Request for Submission of Price the date the conference Request for
Quotation was held with the date Submission of Price
indicated in the print-out Quotation?
of website pages where
the Invitation or Request
September 2, 2009:
for Submission of Price
20.1. Prior to the Advertisement or the
Quotation
issuance of the Invitation to Bid for was posted.
each procurement undertaken through
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Commission on Audit
Audit Sub-objective
Answer
(PBDs), and other standard forms shall
be mandatory upon all Procuring Entities.
However, whenever necessary, to suit
the GPPB.

Vol 4 (June 2006) published by the
GPPB:
How is Negotiated Procurement
Conducted?
1. It is highly advisable for the BAC to
conduct a pre-procurement conference to
confirm the existence of the condition
required by law for negotiated
procurement.
2. To verify if the participants to 2. Secure from the BAC Did the participants to
the Pre-Procurement Conference Secretariat duly certified the Pre-Procurement
included the BAC, the copies of the documents Conference include
Secretariat, the unit or officials,
including consultants hired by Charts, etc) which it used a. BAC?
the procuring entity, who as bases for identifying
prepared the Bidding Documents and notifying the b. Secretariat?
and the draft Request for participants to the Pre-
Submission of Price Quotation Procurement Conference, c. unit or officials who
including duly certified prepared the
Implementing Rules and Regulations copies of the notices Bidding
(IRR) of RA 9184, as amended on issued with evidence of Documents and
September 2, 2009: receipt by the the draft Request
20.1. The pre-procurement participants. for Submission of
conference shall be attended by the Price Quotation?
BAC, the Secretariat, the unit or 3. From the Minutes of
officials, including consultants hired by Pre-Procurement d. consultants hired
the procuring entity, who prepared the Conference look for the by the procuring
Bidding Documents and the draft names of the members of entity, who
Request for Submission of Price the BAC, the members of prepared the
Quotation, for each procurement. the Secretariat, the Bidding
officials and/or Documents and
consultants who prepared the draft Request
the Bidding Documents for Submission of
and the draft Request for Price Quotation?
Submission of Price
Quotation.
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Audit Sub-objective
Answer
and attained the related of the contract, the ABC, a. Description of the
objectives: and contract duration, the scope of the
information and confirmed the
as a result of the b. That there was no
description of the scope of the
deliberation; and analyze splitting?
contract, the ABC, and contract if they led to the
duration; confirmation of the c. ABC?
description of the scope of
b. Discussed relevant
the contract, that there d. Contract duration?
information and confirmed that was no splitting, the ABC,
the procurement is in accordance and the contract duration.
with the project procurement
management plan (PPMP) and
annual procurement plan (APP); 5. From the Minutes of Did the participants
c. Discussed relevant Conference look for discuss and confirm
information and confirmed information on the that the procurement
readiness of the procurement at presentation of the review is in accordance with
hand on the following: of the PPMP and APP, the the PPMP and APP?
c.1. the availability of deliberation thereon, and
appropriations and the conclusions reached
as a result of the
programmed budget for
deliberation; and analyze
contract; if they led to the
c.2. completeness of the confirmation of the
Bidding Documents and their procurement is in
adherence to relevant general accordance with the PPMP
procurement guidelines; and APP.
d. Reviewed, modified and

agreed on the criteria for 6. From the Minutes of Did the participants
eligibility screening, evaluation, Pre-Procurement led by the BAC
and post-qualification; Conference look for discuss and confirm
information on the that the procurement
e. Reviewed and adopted the presentation of at hand is ready as
procurement schedule, including information, the to:
deadlines and timeframes, for deliberation thereon, and
the different activities; the conclusions reached
as a result of the a. availability of
f. Reiterated and emphasized deliberation; and analyze appropriations and
the importance of confidentiality if they led to the programmed
and the applicable sanctions and confirmation of the budget for the
penalties, as well as agreed on readiness of the contract?
measures to ensure compliance procurement at hand as
to:
with the foregoing;
b. completeness of
a. availability of the Bidding
g. Confirmed that there was no appropriations and Documents?
splitting; and programmed budget
for the contract,
h. identified the justification for
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
the change in the mode of b. completeness of the c. adherence of the
procurement from public bidding Bidding Documents Bidding
to Negotiated Procurement and and their adherence to Documents with
the Philippine Bidding the PBDs/
agreed on the recommendations
Documents (PBDs)/ customized
to the HOPE. customized Bidding Bidding
Documents. Documents?
Manual of Procedures for the Procurement
of Consulting Services Vol 4 published by Did the participants
the GPPB: led by the BAC
Methodology: How is Negotiated discuss and confirm
Procurement undertaken? the justifications for
the change in the
7. The procedures for the mode of procurement
conduct of public bidding should from public bidding to
be observed. Negotiated
Procurement and
Implementing Rules and Regulations agreed on the
(IRR) of RA 9184, as amended on recommendations to
September 2, 2009: the HOPE?
20.1. During the conference, the
participants, led by the BAC, shall: 7. From the Minutes of Did the participants
a) Confirm the description and scope Pre-Procurement led by the BAC
of the contract, the ABC, and Conference look for discuss and confirm
contract duration; information on the the criteria for:
b) Ensure that the procurement is in presentation of the criteria
accordance with the project and for eligibility screening,
annual procurement plans; bid evaluation, and post- a. Eligibility
c) Determine the readiness of the qualification, the screening?
procurement at hand, including, deliberation thereon, and
among other aspects, the the conclusions reached
following: as a result of the b. Bid evaluation?
i) availability of appropriations and deliberation; and analyze
programmed budget for the if they led to the
contract; confirmation of the criteria c. Post-qualification?
ii) completeness of the Bidding for eligibility screening,
Documents and their adherence bid evaluation, and post-
to relevant general procurement qualification.
guidelines;
iii)
iv)
8. From the Minutes of Did the participants
d) Review, modify and agree on the
criteria for eligibility screening,
evaluation, and post-qualification;
information on the the adoption of the
e) Review and adopt the procurement
presentation of the procurement schedule
schedule, including deadlines and
procurement schedule, including deadlines
timeframes, for the different
including deadlines and and timeframes for
activities; and
timeframes for the the different
f) Reiterate and emphasize the
different activities, the no- activities?
importance of confidentiality and
contact rule, the
the applicable sanctions and
deliberation thereon, and
penalties, as well as agree on
measures to ensure compliance
as a result of the
with the foregoing.
deliberation; and analyze
if they led to the
confirmation of the
undertaken unless it is in accordance
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
with the approved APP of the adoption of the
procuring entity. The APP shall bear procurement schedule
the approval of the Head of the including deadlines and
Procuring Entity or second-ranking timeframes for the
official designated by the Head of the different activities.
Procuring Entity to act on his behalf,
and must be consistent with its duly
approved yearly budget.
48.2. In accordance with Section 10

bidding as the general mode of
procurement and shall see to it that
the procurement program allows
sufficient lead time for such public
bidding. Alternative methods shall be
exceptional cases provided for in this
Rule.

the HOPE.


January 2009:

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Audit Sub-objective
Answer
projects, agencies can proceed with
the procurement activities prior to
issuance of the notice of award
using as basis the NEP figures.
under the agencys budget, the head
of the agency shall identify and
thereafter notify the implementing
units (IUs) of the amount allocated
for the projects they are to
implement. On the basis of said
notification, the heads of the
respective IUs, as procuring entities,
can proceed with the procurement
notice of award.
4.5. For Multi-Year Projects (MYPs), for
which the initial funding sourced
from either the existing/current
years budget or the NEP is not
sufficient to cover the total cost of
the project, it is required that a
issued in accord with DBM Circular
Letter 2004-012 prior to
commencement of any procurement
activity.
Thus, the MYOA shall be a pre-
requisite for procurement of a multi-
year contract. All procurement
activities should be within the total
project cost and categories reflected
in the MYOA issued by DBP for the
said MYP.
Chapter 8, Subtitle B, Title I, Book V
of the Administrative Code of 1987,
no contract involving the
expenditure of public funds shall be
entered into unless the proper
accounting official of the procuring
entity shall have certified as to the
allotment to which the expenditure
or obligation may be properly
charged.
Definition:
3.1. Allotment - document issued by
the Department of Budget and
Management (DBM) which
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
obligations for a specified amount
as contained in a legislated
issued may either be trough the
Agency Budget Matrix (ABM)
which covers the comprehensive
release of specifically appropriated
items in the agencys budget or
3.2. Annual Procurement Plan (APP)

the requisite document that the
agency must prepare to reflect the
entire procurement activity (i.e.,
goods, services, civil works to be
procured) that it plans to
year. This document contains the
program/project;
3.2.2. Project management office or
end-user unit;
procurement;
adopted;
Contract.

following:
Section 2.1)
3.3.1. For specifically appropriated
items as reflected in the annual
budget of the national government
agency, the amount corresponding to
either the full cost of a single year
or multi-year program/project/
activity. For multi-year projects, for
which a Multi-Year Obligational
Authority has been issued, the ABC
shall be the amount reflected in the
Multi-Year Obligational Authority.
Section 2.2)
institutions as well as LGUs, the ABC
represents the amount of fund
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
transfers which they receive from a
national government agency to
implement a program/project/activity.
3.5. Lump-Sum Appropriations and

Centrally Management Items (CMIs)
those itme in the budget of
agencies for which the Implementing
Units and the specific amounts
allocated for each have not been
identified in the National Expenditure
3.8. Multi-Year Obligational Authority

(MYOA) a document issued by the
DBM either for locally funded projects
or foreign assisted projects
implemented by agencies in order to
authorize the latter to enter into
multi-year contracts for the full
project cost. A MYOA, which contains
an annual breakdown of the full
project cost, obligates agencies to
include in their budget proposal for
the ensuring years the amount
3.9. National Expenditure Program

(NEP) the proposed national budget
submitted by the President to
Congress in accord with Section 22,
Article VII of the Constitution. The
NEP shall be the basis of the general
appropriations bill, which upon its
enactment, becomes the General
9. From the Minutes of Did the participants

Conference look for reiterate and
information on the emphasize the
reiteration and emphasis importance of
of the importance of confidentiality and
confidentiality and the the applicable
applicable sanctions and sanctions and
penalties, as well as the penalties, as well as
agreement on measures the agreement on
to ensure compliance. measures to ensure
compliance?

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Commission on Audit
Audit Sub-objective
Answer
resulting contract;
contract;
c. etc.
OFFENSES AND
PENALTIES portion
September 2, 2009:
invited in writing.

recommendations
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion

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Prepared by:
Commission on Audit
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Two-Failed Biddings)
was in accordance with the rules and regulations

Secretariat;
2. BAC Resolution recommending negotiated procurement, duly approved by the HOPE.

Audit Sub-objective
Answer
1. To verify if through a 1. From the BAC Did the BAC through
Resolution the BAC presented Resolution, look for a Resolution
two (2) failed biddings as the information on the BACs presented two (2)
justification and failed biddings as the
recommendation for the justification for the
procurement recommended to change in the mode of negotiated
the HOPE for approval procurement to the HOPE procurement
for approval. recommended to the
HOPE for approval?
September 2, 2009:

this IRR.
53.1.1. After conduct of the

mandatory review of the terms,
conditions, specifications, and cost
estimates, as prescribed in Section 35
of this IRR, the BAC shall revise and
agree on the minimum 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.
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
the HOPE.

mode of procurement: recommending alternative mode of
Negotiated Procurement procurement:
as the method of Negotiated
HOPE, procurement, look for the Procurement to the
and approval of the HOPE. HOPE?
procurement
Implementing Rules and Regulations Did the HOPE

(IRR) of RA 9184, as amended on approve Negotiated
September 2, 2009: Procurement as the
method of
48.3. The method of procurement to procurement?
the HOPE.

contract;
c. etc.
NOTE:
Also refer to the
recommendations
OFFENSES AND
Implementing Rules and Regulations PENALTIES portion
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Prepared by:
Commission on Audit
Audit Sub-objective
Answer
(IRR) of RA 9184, as amended on of this Audit Guide.
September 2, 2009:
invited in writing.

recommendations
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion

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Commission on Audit
V. SELECTION OF CONSULTANTS AND

REQUEST FOR SUBMISSION OF PRICE QUOTATIONS
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Two-Failed Biddings)

2. Minutes of the BACs meetings on the selection and invitation of consultants;
3. List of selected consultants to be invited;

of Consultants as basis for evaluation reports Entitys registry of
supported with copies of consultants who
selecting the consultants to
be invited for the
Registry of consultants, classified under the
negotiations look for information on type of
the basis of identification contract/project
Implementing Rules and Regulations of the consultants to be where the subject
(IRR) of RA 9184, as amended on invited for the contract falls, as
September 2, 2009: negotiations and the list one of the bases
53.1.2. The BAC shall invite and of identified consultants for selecting the
engage in negotiations with a based on the agreed- consultants to be
sufficient number of consultants upon basis. invited for the
to ensure effective competition. negotiations?
53.1.2.1.
shall maintain a registry of Did the BAC arrive
consultants as basis for at a list of
selecting the consultants for consultants to be
negotiations. invited as agreed
during the
meetings
conducted for the
purpose?
all consultants identified from the consultants to whom and engage in
the Registry (ies) and other invitations have been sent negotiations with a
by the BAC (with evidence sufficient number
of receipt) with the list of of consultants?
the purpose selected consultants.
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September 2, 2009:
sufficient number of consultants
to ensure effective competition.
53.1.2.1.
consultants as basis for
selecting the consultants for
negotiations.
the Request for Submission of procurement, request the the Request for
Price Quotations BAC Secretariat for Submission of Price
continuously in the PhilGEPS advance information on Quotations
the first day of any continuously in
website and the website of
posting. the:
concerned, if available, for 7 4. On the first day of 1. PhilGEPS
calendar days starting on the posting access the website for 7
date of posting PhilGEPS website, the calendar days
website of the procuring starting on the
Implementing Rules and Regulations entity concerned, if date of
(IRR) of RA 9184, as amended on available. Print the page advertisement?
September 2, 2009: where the notice was
54.2. For alternative methods of posted (to form part of 2. website of the
procurement, advertisement and the audit evidences). procuring entity
posting as prescribed in Section concerned, if
21.2.1 of this IRR may be 5. Access the websites at available, for 7
dispensed with: Provided, random during the 7-day calendar days
however, That the BAC, through period to verify the starting on the
its Secretariat, shall post the postings. date of
invitation or request for advertisement?
submission of price quotations for OR
Shopping under Sections 52.1(b) From the printouts of the
and Negotiated Procurement web pages indicating the
under Sections 53.1 (two-failed dates of printing, obtained
biddings) and 53.9 (small value from and duly certified by
procurement) of this IRR in the the BAC Secretariat as
PhilGEPS website, the website of true and correct, compare
the procuring entity concerned, if these dates with the
available, and at any conspicuous required dates of posting.
calendar days.
the Request for Submission of procurement, request the the Invitation to
Price Quotation continuously BAC Secretariat for Bid:
at any conspicuous place
posting. 1. continuously for
the premises of the procuring seven (7)
entity for 7 calendar days, as 7. Conduct ocular calendar days?
certified by the head of the
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Prepared by:
Commission on Audit
BAC Secretariat of the inspection on the first day
procuring entity of posting.
2. at the
Implementing Rules and Regulations 8. Repeat the ocular conspicuous
(IRR) of RA 9184, as amended on inspections (may be at place reserved
September 2, 2009: random) during the 7-day for the purpose
54.2. For alternative methods of period to verify the in the premises
procurement, advertisement and postings. of the procuring
posting as prescribed in Section entity?
21.2.1 of this IRR may be 9. Request for the
dispensed with: Provided, certification of the head of
however, That the BAC, through the BAC Secretariat. 3. as certified by
its Secretariat, shall post the the head of the
invitation or request for BAC Secretariat
submission of price quotations for of the procuring
Shopping under Sections 52.1(b) entity?
calendar days.

the contract;
c. etc.
NOTE:
Also refer to the
invited in writing.
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Prepared by:
Commission on Audit
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion

Accounts
NOTES:
Procurement of Consulting Services Vol 4 published by the GPPB:
o How is Negotiated Procurement undertaken?

Guide on the Procedures: Competitive/Public Bidding are to be observed with
particular attention given to compliance by the BAC of the following provisions of
the Revised IRR of RA 9184 during bid evaluation up to award:
53.1.4. Following completion of the negotiations, the procuring entity shall request all
suppliers, contractors, or consultants remaining in the proceedings to submit, on a
specified date, a best and final offer with respect to all aspects of their proposals.
53.1.5. The procuring entity shall select the successful offer on the basis of such best and
final offers which should meet the procuring entitys minimum technical requirements and
should not exceed the ABC.
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53.1.3. Any requirements, guidelines, documents, clarifications, or other information relative

to the negotiations that are communicated by the procuring entity to a supplier, contractor,
or consultant shall be communicated on an equal basis to all other suppliers, contractors,
or consultants engaging in negotiations with the procuring entity relative to the
procurement.

means the division or breaking up of GOP contracts into smaller quantities and amounts,
or dividing contract implementation into artificial phases or sub-contracts for the purpose
of evading or circumventing the requirements of law and this IRR, specially the necessity
of public bidding and the requirements for the alternative methods of procurement.
(UN agencies).
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EMERGENCY CASES
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Commission on Audit
EMERGENCY CASES

consultant in any of the following cases: (1) Two Failed Biddings, (2) Emergency Cases, (3) Take-Over
of Contracts, (4) Adjacent or Contiguous, (5) Agency-to-Agency, (6) Highly-Technical Consultants,
(7) Small Value Procurement.
Emergency Cases - In case of imminent danger to life or property during a state of calamity,
or when time is of the essence arising from natural or man-made calamities or other causes where
immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public
services, infrastructure facilities and other public utilities.
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement in Emergency Cases

Secretariat;

Audit Activities
the Answer
calamity, or or property during a to life or property
b. time is of the essence arising state of calamity, or during a state of
from natural or man-made b. time is of the essence calamity?
calamities or other causes arising from natural or
where immediate action is man-made calamities or
necessary to prevent damage or other causes where b. time is of the
to or loss of life or property, or immediate action is essence arising
necessary to prevent from natural or
damage to or loss of man-made
infrastructure facilities and life or property, or to calamities or other
other public utilities restore vital public causes where
services, infrastructure immediate action
Implementing Rules and Regulations facilities and other is necessary to
(IRR) of RA 9184, as amended on public utilities prevent damage to
September 2, 2009:
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Prepared by:
Commission on Audit
Audit Activities
the Answer
53.2. Emergency Cases - In case or loss of life or
of imminent danger to life or property property, or to
during a state of calamity, or when restore vital public
time is of the essence arising from services,
natural or man-made calamities or infrastructure
other causes where immediate action facilities and other
is necessary to prevent damage to or public utilities?
loss of life or property, or to restore
vital public services, infrastructure
2. To verify if the BAC validated 2. From the BAC Did the BAC validate
the justification for adoption of Resolution, look for the justification for
the alternative method of information on the adoption of the
BACs validation of the alternative method of
justification for procurement:
Procurement and through a
adoption of the Negotiated
Resolution recommended said alternative method of Procurement and
method to the HOPE for approval procurement: recommended said
Negotiated method to the HOPE
Implementing Rules and Regulations Procurement and for approval?
(IRR) of RA 9184, as amended on recommended said
September 2, 2009: method to the HOPE
for approval.

the HOPE.

of procurement: Negotiated recommending the Procurement as the
negotiated procurement method of
Procurement
as an alternative method, procurement?
look for the approval of
the HOPE.
September 2, 2009:
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Prepared by:
Commission on Audit
Audit Activities
the Answer

the HOPE.

contract;
c. etc.
NOTE:
recommendations
Also refer to the
invited in writing.

recommendations
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
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Audit Activities
the Answer
PENALTIES portion

NOTES:
1. Based on the following requirement of the Manual of Procedures for the Procurement of
Consulting Services Vol. 4 (June 2006) published by the GPPB:
o How is Negotiated Procurement conducted?

Guide on the Procedures: Competitive/Public Bidding are to be observed.

means the division or breaking up of GOP contracts into smaller quantities and amounts,
or dividing contract implementation into artificial phases or sub-contracts for the purpose
of evading or circumventing the requirements of law and this IRR, specially the necessity
of public bidding and the requirements for the alternative methods of procurement.
(UN agencies).
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consultant in any of the following cases: (1) Two Failed Biddings, (2) Emergency Cases, (3) Take-
Over of Contracts, (4) Adjacent or Contiguous, (5) Agency-to-Agency, (6) Highly-Technical
Consultants, (7) Small Value Procurement.
Take-over of contracts, which have been rescinded or terminated for causes provided for
in the contract and existing laws, where immediate action is necessary to prevent damage to or
loss of life or property, or to restore vital public services, infrastructure facilities and other public
utilities.
I. PREPARATORY ACTIVITY: REGISTRY OF CONSULTANTS
The Registry of Consultants is to be maintained updated by the Procuring Entity.
A. AUDIT OBJECTIVE
To determine if the Procuring Entity developed and maintained a Registry of Consultants

Documentation on the System of the Registry of Consultants maintained by the Procuring
Entity

the Answer
entity maintained a registry registry of Consultants Entity maintain a
of Consultants as basis for maintained by the registry of
Procuring Entity. Consultants as
basis for selecting
negotiations the Consultants for
negotiations?
September 2, 2009:
Consultants as basis for
negotiations.

appropriate audit
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the Answer
resulting contract;
the contract;
c. etc.
OFFENSES AND
this Audit Guide.
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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II. APPROVAL OF THE ALTERNATIVE METHOD
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Take-Over) was
in accordance with the rules and regulations


Audit Sub-objective
Answer
1. To verify if the BAC validated: 1. From the minutes of BAC Did the BAC validate:
a. that the contract for the meetings look for
project has been terminated or information on the BACs a. that the contract
validation: for the project has
rescinded; and
a. that the contract for the been terminated
b. there is a need for immediate project has been or rescinded?
action to prevent damage to or terminated or rescinded;
loss of life or property, or to and And
restore vital public services, b. there is a need for
infrastructure facilities and immediate action to b. there is a need for
other public utilities prevent damage to or immediate action
loss of life or property, or to prevent damage
Implementing Rules and Regulations to restore vital public to or loss of life or
(IRR) of RA 9184, as amended on services, infrastructure property, or to
September 2, 2009: facilities and other public restore vital public
utilities. services,
53.3. Take-over of contracts, which infrastructure
have been rescinded or terminated facilities and other
for causes provided for in the public utilities?
contract and existing laws, where
immediate action is necessary to
prevent damage to or loss of life or
property, or to restore vital public
services, infrastructure facilities and
other public utilities.
the justification for adoption of look for information on the justification for
Procurement (Take-Over) and alternative method of Negotiated
through a Resolution procurement: Negotiated Procurement (Take-
recommended said method to the Procurement (Take-Over) Over) and
HOPE for approval and recommended said recommend said
method to the HOPE for method to the HOPE
Implementing Rules and Regulations approval. for approval?
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Audit Sub-objective
Answer
September 2, 2009:


the HOPE.
Procurement (Take-Over)
HOPE.
September 2, 2009:
the HOPE.

authority.
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Audit Sub-objective
Answer
appropriate audit
contract;
c. etc.
NOTE:
recommendations
Also refer to the
invited in writing.

appropriate audit
recommendations
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

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III. NEGOTIATION
A. AUDIT OBJECTIVE:
To verify if the negotiation conducted were as required

2. Documentation preliminary to inviting the second HRB for negotiation, including the
invitation;

NEGOTIATION WITH THE SECOND HRB FOR THE PROJECT
negotiated the contract BAC meetings, TWG negotiate the
starting with the bidder with evaluation reports with contract starting
supporting documents duly with the second
the second highest rated bid
reviewed by the BAC, look highest rated bid at
for the project under
for information on the the bidders
consideration at the bidders BACs negotiations. original price?
original bid price

September 2, 2009:
NOTES:
53.3.
If negotiation
53.3.1. The contract may be prospered, proceed to
negotiated starting with the Post-qualification
second highest rated bidder for then Award using the
the project under consideration at Audit Guide for
the bidders original bid price. Competitive/ Public
Bidding for
53.3.2.
53.3.3. Authority to negotiate Consulting Services.
these exceptional cases shall be If negotiation failed,
subject to prior approval by the proceed to the next
Heads of the Procuring Entities audit Sub-objective.
authority.
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WHEN NEGOTIATION WITH THE SECOND HRB FOR THE PROJECT FAILED
1. When the negotiation with 1. From the Minutes of the When the
the second HRB failed, to BAC meetings, TWG negotiation with
verify if the BAC negotiated evaluation reports with the second HRB
supporting documents duly failed, did the BAC
the contract with the bidder
reviewed by the BAC, look negotiate the
with the third highest rated for information on the contract with the
bid for the project under BACs negotiations. third highest rated
consideration at the bidders bid at the bidders
original bid price original price?

September 2, 2009:
53.3. NOTES:
53.3.1. The contract may be If negotiation

negotiated starting with the prospered, proceed to
second highest rated bidder for Post-qualification
the project under consideration at then Award using the
the bidders original bid price. Audit Guide for
Competitive/ Public
negotiation shall be done with the Bidding for
third highest rated bidder at his Consulting Services.
original price.
If negotiation failed,
53.3.3. Authority to negotiate proceed to the next
contracts for projects under audit Sub-objective.
these exceptional cases shall be
authority.
WHEN NEGOTIATION WITH THE THIRD HRB FOR THE PROJECT FAILED
of consultants under the type evaluation reports Entitys registry of
supported with copies of consultants who
of contract/project where the
Registry of Consultants, classified under the
for preparing the shortlist of look for information on the type of
consultants to be invited for basis of identification of the contract/project
the negotiations consultants to be invited for where the subject
the negotiations and the contract falls, as
Implementing Rules and Regulations shortlist of identified one of the bases
(IRR) of RA 9184, as amended on consultants. for selecting the
September 2, 2009: consultants to be
invited for the
53.3. negotiations?
53.3.1.
the third highest rated bidder at
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his original price. If the Did the BAC arrive
negotiation fails again, a short at the shortlist of
list of at least three (3) eligible consultants to be
contractors shall be invited to invited using the
submit their bids, and criteria and
negotiation shall be made procedures as
starting with the highest rated agreed during the
bidder. meetings
conducted for the
53.1.2.2. All Procuring Entities purpose?
contractors as basis for selecting
the consultants for negotiations.
the shortlisted consultants to the consultants to whom the shortlisted
submit their bids invitations have been sent consultants to
by the BAC (with evidence submit their bids?
Implementing Rules and Regulations of receipt) with the
(IRR) of RA 9184, as amended on consultants in the shortlist.
September 2, 2009:
the third lowest calculated/
highest rated bidder at his
original price. If the negotiation
fails again, a short list of at least
three (3) eligible contractors
bids, and negotiation shall be
made starting with the highest
rated bidder.
3. To verify if the BAC NOTE: Did the BAC

negotiated starting with the Proceed to the Audit negotiate starting
bidder with the highest rated Guide on Bid with the bidder
Evaluation and with the highest
bid (HRB)
rated bid?
Implementing Rules and Regulations onwards under
(IRR) of RA 9184, as amended on Competitive/Public
September 2, 2009: Bidding for
53.3.2. If negotiation fails, then Consulting Services.
the third lowest calculated/ QUESTION:
highest rated bidder at his What will happen if
original price. If the negotiation
after negotiation
fails again, a short list of at least
three (3) eligible contractors which prospered, the
shall be invited to submit their bidder was post-
bids, and negotiation shall be disqualified?
made starting with the highest
rated bidder.

appropriate audit
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resulting contract;
the contract;
c. etc.
OFFENSES AND
this Audit Guide.
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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NOTES:

Procurement of Consulting Services Vol. 4 (June 2006)published by the GPPB:

53.1.3. Any requirements, guidelines, documents, clarifications, or other information

relative to the negotiations that are communicated by the procuring entity to a
supplier, contractor, or consultant shall be communicated on an equal basis to all
other suppliers, contractors, or consultants engaging in negotiations with the
procuring entity relative to the procurement.


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Adjacent or Contiguous - Where the subject contract is adjacent or contiguous to an on-

going Consulting Service where the consultants have unique experience and expertise to deliver
the required service.
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Adjacent or

Contiguous) was in accordance with rules and regulations

2. BAC Resolution recommending negotiated procurement, duly approved by the HOPE.

Audit Activities
the Answer
1. To verify if the BAC validated 1. From the minutes Did the BAC validate
that: of BAC meetings that:
a. the project is adjacent or look for information
on the BACs a. the project is
contiguous to an on-going
validation that: adjacent or
Consulting Service;
a. adjacent or contiguous to an
b. that the original contract is contiguous to an on-going
the result of a Competitive on-going project; Consulting
Bidding; b. that the original Service?
c. the subject contract to be contract is the
negotiated has similar or result of a b. that the original
related scopes of work; Competitive contract is the
d. it is within the contracting Bidding; result of a
c. the subject Competitive
capacity of the consultant;
contract to be Bidding?
e. the consultant uses the same
negotiated has
prices or lower prices as in the similar or related c. the subject
original contract; scopes of work; contract to be
f. the amount involved does not d. it is within the negotiated has
exceed the amount of the contracting similar or related
ongoing project; capacity of the scopes of work;?
consultant;
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Audit Activities
the Answer
g. the consultant has no e. the consultant uses d. it is within the
negative slippage/delay; the same prices or contracting
h. the negotiations for the lower unit prices capacity of the
as in the original consultant?
procurement are commenced
contract less
before the expiry of the mobilization cost; e. the consultant uses
original contract. f. the amount the same prices or
involved does not lower prices as in
Implementing Rules and Regulations exceed the the original
(IRR) of RA 9184, as amended on amount of the contract?
September 2, 2009: ongoing project;
g. the consultant has f. the amount
53.4. Adjacent or Contiguous. Where
no negative involved does not
the subject contract is adjacent or
slippage/delay, exceed the
contiguous to an on-going Infrastructure
h. the negotiations amount of the
Project or Consulting Service where the
for the ongoing project?
consultants have unique experience and
procurement are
expertise to deliver the required service:
commenced g. the consultant has
Provided, however, That (a) the original
before the expiry no negative
contract is the result of a Competitive
of the original slippage/delay?
Bidding; (b) the subject contract to be
contract.
negotiated has similar or related scopes
h. the negotiations
of work; (c) it is within the contracting
for the
capacity of the consultant; (d) the
procurement are
consultant uses the same prices or lower
commenced
unit prices as in the original contract less
before the expiry
mobilization cost; (e) the amount
of the original
involved does not exceed the amount of
contract?
the ongoing project; and (f) the
consultant has no negative slippage/
delay: Provided, further, That
negotiations for the procurement are
commenced before the expiry of the
original contract.
2. To verify if the BAC: 2. From the BAC Did the BAC:

Resolution, look
a. validated the justifications for information on a. validate the
the BACs justification for
for adoption of the
validation of the adoption of the
justification for alternative method
procurement: Negotiated adoption of the of procurement:
Procurement (Adjacent or alternative method Negotiated
Contiguous) and of procurement: Procurement
b. through a Resolution Negotiated (Adjacent or
recommended said method Procurement Contiguous)?
to the HOPE for approval (Adjacent or
Contiguous) and AND
Implementing Rules and Regulations recommended said
(IRR) of RA 9184, as amended on method to the b. recommend said
September 2, 2009: HOPE for method to the
approval. HOPE for
48.1. Subject to the prior approval of approval?
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Audit Activities
the Answer

the HOPE.

of procurement: Negotiated recommending the Procurement
negotiated (Adjacent or
procurement as an Contiguous) as the
Contiguous)
alternative method, method of
look for the approval procurement?
of the HOPE.
September 2, 2009:
the HOPE.

authority.

and develop
activities and outputs recommendations.
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Commission on Audit
Audit Activities
the Answer
resulting contract; Also determine if
appropriate actions
b. validity of any payment to be were taken by the
c. etc. compliance.
recommendations
PENALTIES
Observers shall be invited at least portion of this
Audit Guide.
invited in writing.

and develop
recommendations
appropriate audit
recommendations.
Also determine if
appropriate actions
were taken by the
instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this
Audit Guide.
3. To communicate the results of Prepare the

the audit with the auditees appropriate audit/ Audit Observation Memorandum (AOM), if
Management validation document applicable
reflecting the results
COA Circular No. 2009-006 dated of the audit/validation
September 15, 2009 re- Prescribing the and transmit to
Use of the Rules and Regulations on Management
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Adjacent or Contiguous
II. NEGOTIATION
A. AUDIT OBJECTIVE:
To verify if the negotiations conducted were as required

2. Documentation preliminary to inviting the consultant with the on-going adjacent or
contiguous project for negotiation, including the invitation;

negotiated the contract with BAC meetings, TWG negotiate the
the consultant of the on- evaluation reports with contract with the
supporting documents duly consultant of the
going adjacent or contiguous
reviewed by the BAC, look on-going adjacent
project identified during the for information on the or contiguous
evaluation/deliberations and BACs negotiations. project identified
as approved by the HOPE during the
evaluation/delibera
Implementing Rules and Regulations tions and as
(IRR) of RA 9184, as amended on approved by the
September 2, 2009: HOPE?
53.4. Adjacent or Contiguous.

Where the subject contract is NOTES:
adjacent or contiguous to an on-
going Infrastructure Project or If negotiations
Consulting Service where the prospered, proceed to
consultants have unique experience Award using the Audit
and expertise to deliver the required Guide for Competitive/
service: Provided, however, That (a) Public Bidding for
the original contract is the result of a Consulting Services.
Competitive Bidding; (b) the subject
contract to be negotiated has similar
or related scopes of work; (c) it is If negotiations failed,
within the contracting capacity of the project is to be
the consultant; (d) the consultant subjected to
uses the same prices or lower unit competitive/public
prices as in the original contract less bidding. For the audit,
mobilization cost; (e) the amount adopt the Audit Guide
involved does not exceed the for the Procurement of
amount of the ongoing project; and Consulting Services by
(f) the consultant has no negative Competitive/Public
slippage/delay: Provided, further, Bidding.
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That negotiations for the
procurement are commenced before
the expiry of the original contract.
NOTES:

Procurement of Consulting Services Vol. 4 (June 2006) published by the GPPB:

for the rest of the procurement procedures, the Audit Guide on the Procedures:
Competitive/Public Bidding are to be observed.


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OF CONSUTING SERVICES
AGENCY-TO-AGENCY
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AGENCY-TO-AGENCY

Agency-to-Agency - Procurement of consulting services from another agency of the GOP.
For purposes of this Section 53.5 of the Revised IRR of RA 9184, the term agency
excludes GOCCs incorporated under Batas Pambansa Blg. 68, otherwise known as the
Corporation Code of the Philippines. The GPPB shall issue guidelines to implement this provision
NOTE: No Audit Guide has been developed for this method of procurement
since this involves Government-to-Government transactions and in the
absence of GPPB Guidelines.
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HIGHLY TECHNICAL CONSULTANTS
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HIGHLY TECHNICAL CONSULTANTS

Highly Technical Consultants - Individual consultants hired to do work that is (i) highly
technical or proprietary; or (ii) primarily confidential or policy determining, where trust and
confidence are the primary consideration for the hiring of the consultant: Provided, however, That
the term of the individual consultants shall, at the most, be on a six month basis, renewable at the
option of the appointing Head of the Procuring Entity, but in no case shall exceed the term of the
latter. [AS AMENDED UNDER GPPB RESOLUTION NO. 06-2009 DATED 30 SEPTEMBER 2009]
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Highly Technical
Consultants) was in accordance with rules and regulations
1. Justification for hiring of the highly technical consultant

2. Appointment/job order/contract of the highly technical consultant hired by the Procuring
Entity
3. Appointment of the Head of the Procuring Entity

Audit Activities
the Answer
1. To verify if the Procuring 1. From the documents Did the Procuring
Entity validated that the work of justifying the hiring of Entity validate if the
individual consultant is: highly technical work is:
consultant, look for
information on the that a. highly technical?
a. highly technical or the work is:
b. proprietary or a. highly technical or or
c. primarily confidential or b. proprietary or
d. policy determining c. primarily confidential b. proprietary?
or
Implementing Rules and Regulations d. policy determining. or
September 2, 2009: c. primarily
confidential?
53.7. Highly Technical Consultants. In
the case of individual consultants hired or
to do work that is (i) highly technical
or proprietary; or (ii) primarily d. policy determining
confidential or policy determining,
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Audit Activities
the Answer
where trust and confidence are the
primary consideration for the hiring of
the consultant: Provided, however,
That the term of the individual
consultants shall, at the most, be on a
six month basis, renewable at the
option of the appointing Head of the
Procuring Entity, but in no case shall
exceed the term of the latter.
2. To verify if the Head of the 2. From the Did the Head of the
Procuring Entity hired appointment/job Procuring Entity hire
the individual consultants for a order/contract (including the individual
renewals, if any) of the consultants for a term
term of at most six months,
individual consultant look of at most six
renewable at the option of the if the term does not months?
appointing Head of the Procuring exceed six (6) months.
Entity, and shall not exceed the
term of the Head of the Procuring
Entity 3. Compare the last day Did the term of the
of the term of the consultant within the
Implementing Rules and Regulations consultant with the last term of the Head of
(IRR) of RA 9184, as amended on day of the term of the the Procuring Entity?
September 2, 2009: Head of the Procuring
Entity.
53.7. Highly Technical Consultants. In
the case of individual consultants hired
to do work that is (i) highly technical
or proprietary; or (ii) primarily
confidential or policy determining,
where trust and confidence are the
primary consideration for the hiring of
the consultant: Provided, however,
That the term of the individual
consultants shall, at the most, be on a
six month basis, renewable at the
option of the appointing Head of the
Procuring Entity, but in no case shall
exceed the term of the latter.

recommendations.
Also determine if
including the validity of the appropriate actions were
resulting contract; taken by the auditee in
b. validity of any payment to be non-compliance.
contract;
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Audit Activities
the Answer
c. etc. NOTE:
Also refer to the
OFFENSES AND
recommendations
PENALTIES portion
Implementing Rules and Regulations of this Audit Guide.
September 2, 2009:
invited in writing.

recommendations
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion

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Small-Value Procurement - Where the amount of procurement does not exceed the
thresholds prescribed in Annex H of the IRR, RA 984, the procuring entity shall draw up a list of
at least three (3) consultants of known qualifications which will be invited to submit proposals.

1st Class 500,000 500,000 100,000
2nd Class 500,000 500,000 100,000
3rd Class 500,000 400,000 100,000
4th Class 400,000 300,000 50,000
5th Class 300,000 200,000 50,000
6th Class 200,000 100,000 50,000
A. AUDIT OBJECTIVE:


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Audit Sub-objective
Answer
procurement per APP was documents and minutes of procurement per
of the BACs meetings APP was public
and relevant BAC bidding but cannot be
ultimately pursued; Resolution(s), look for ultimately pursued?
and, information on the BACs
b. the existence of the conditions validation that the
to justify Small-Value original mode of Did the BAC validate
Procurement and the amount procurement per APP the existence of the
involved did not exceed the was public bidding but conditions to justify
thresholds in Annex H of the cannot be ultimately Small-Value
Revised IRR of RA 9184. pursued and of the Procurement?
existence of the
Implementing Rules and Regulations conditions to justify Or
(IRR) of RA 9184, as amended on Small-Value b. the amount
September 2, 2009: Procurement. involved did not
exceed the
48.3. The method of procurement to thresholds in
be used shall be as indicated in the Annex H of the
Approved Procurement Plan (APP). If Revised IRR of RA
the original mode of procurement 9184?
the HOPE.

Where the procurement does the
amount involved does not exceed the
thresholds prescribed in Annex H of
this IRR.
Guidelines for Shopping and Small Value

Procurement covered by GPPB Resolution
No. 09-2009, dated 23 November 2009:
1. SCOPE AND PURPOSE

a.
b. Small Value Procurement of
goods, infrastructure projects, and
consulting services under 53.9 of the
IRR.
a. recommended the alternative recommending Small-Value recommend the
mode of procurement: Small Procurement as the method alternative mode of
of procurement, look for procurement: Small-
the approval of the HOPE. Value Procurement to
HOPE,
the HOPE?
and
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Commission on Audit
Audit Sub-objective
Answer
alternative method of Did the HOPE
procurement approve Small-Value
Procurement as the
method of
procurement?
September 2, 2009:
the HOPE.

appropriate audit
contract;
c. etc.
NOTE:
recommendations
Also refer to the
invited in writing.

appropriate audit
recommendations
recommendations.
Also determine if
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Commission on Audit
Audit Sub-objective
Answer
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

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Commission on Audit
A. AUDIT OBJECTIVE
To verify if the Procuring Entity conducted Small-Value Procurement as required by regulations

1. evidences that the consultants identified were bona fide;
2. copy of the requests for price quotations duly received by the consultants;
5. documentation of the analysis of the price quotations and the negotiation, leading to the
conclusion of what was to be accepted/ compliance with the specifications and other
terms and conditions stated in the RFQ;
9. notice of award;

the Answer
bona fide consultants
price quotations were consultants?
obtained from at least 3 bona
September 2, 2009:
fide consultants.
consultants, of known
qualifications which will be invited
to submit proposals,
2. For procurement with an 2. Ahead of the procurement, Did the

ABC of more than Php request the procuring entity procurement unit
50,000.00, To verify if the for advance information on the of the Procuring
notice of award in:
RFQs in:
a. the PhilGEPS, website, the website of the a. the PhilGEPS
b. the website of the procuring entity concerned, if for a period of 7
procuring entity, if available and print the page calendar days?
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the Answer
c. any conspicuous place in (to form part of the audit b. the website of
the premises of the evidences). the procuring
procuring entity entity for a
for a period of 7 calendar
days
Guidelines for Shopping and Small c. any

Value Procurement covered by GPPB conspicuous
Resolution No. 09-2009, dated 23 place in the
November 2009: premises of the
procuring entity
1. . . . for a period of 7

applicable:
i.
50,000.00) and below.

Quotations after the deadline indication of the highest rated of the Procuring
offer. Entity prepare an
Abstract of
the highest rated offer Abstract of Quotations with the
deadline for submission of
Guidelines for Shopping and Small price quotations as indicated in
Value Procurement covered by GPPB the RFQs. Did the
Resolution No. 09-2009, dated 23 procurement unit
November 2009: of the Procuring
Entity prepare an
1. . . . Abstract of
2. . . . Quotations after
3. Procedural Guidelines the deadline for
submission of price
e. After the deadline for quotations?
submission of price quotations,
an Abstract of Quotations shall
be prepared setting forth the
names of those who responded
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Prepared by:
Commission on Audit
the Answer
to the RFQ, their corresponding Did the
price quotations, and the procurement unit
highest rated offer submitted. of the Procuring
Entity determine
the highest rated
offer?

entity made the award of consultant with the highest entity award the
contract to the consultant rated offer as indicated in the contract to the
Abstract of Quotation with the consultant with the
with the highest rated offer
name of consultant who was highest rated offer
which complied with the
awarded the contract. which complied
specifications and other with the
terms and conditions stated 8. From the documentation of specifications and
in the RFQ the evaluation of price other terms and
quotations and negotiations conditions stated in
Guidelines for Shopping and Small conducted by the procuring the RFQ?
Value Procurement covered by GPPB entity, look for the verification
Resolution No. 09-2009, dated 23 on the compliance with the
November 2009: specifications and other terms
and conditions stated in the
1. . . . RFQ.
2. . . .

made, after successful
negotiations, to the highest
rated offer which complies with
the RFQ.
5. For procurement with an 9. Ahead of the procurement, Did the procuring

ABC of more than Php request the procuring entity entity post the
50,000.00, To verify if the for advance information on the award in:
a. the PhilGEPS?
award in:
available where the award was posted
Guidelines for Shopping and Small on the schedule of posting. the procuring
Value Procurement covered by GPPB entity?
November 2009:
1. . . .
2. . . .
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the Answer


appropriate audit
of non-compliance.
the contract;
c. etc.
Also refer to the
OFFENSES AND
invited in writing.

appropriate audit
recommendations.

of non-compliance.
NOTE:
Also refer to the
OFFENSES AND
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the Answer
this Audit Guide.

Accounts
Other criteria:


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Prepared by:
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ON OFFENSES AND
SANCTIONS / PENALTIES
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Prepared by:
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ON OFFENSES AND SANCTIONS/PENALTIES
A. AUDIT OBJECTIVES
1. To verify if the Head of the Procuring Entity initiated the conduct of investigation and
recommended the imposition of sanctions/ penalties to both the public officials and private
individuals who did not comply with the provisions of the procurement law
2. To verify if the Head of the Procuring Entity exercised his power judiciously

1. Audit Observation Memoranda;
2. certified copy of project monitoring reports prepared by the BAC as approved and
submitted by the HOPE to the GPPB;
3. reports / comments of observers.

the Answer
1. To verify if the Head of the 1. Consolidate the offenses
Procuring Entity (HOPE) committed by officials of the Appropriate Audit Working Papers showing
initiated the conduct of Procuring Entity mentioned in: the Consolidated List of Offenses and
Audit Observation
investigation and possible sanctions/penalties, with
Memoranda,
recommended the imposition information on the actions taken by the
reports/comments of
of sanctions/ penalties to observers, Procuring Entity
erring public officials who certified copies of project
committed any of the monitoring reports prepared
following: by the BAC as approved and Did the HOPE
submitted by the HOPE to initiate the conduct
a. Opening any sealed bid or the GPPB, of investigation?
divulging their contents, relevant reports of the BAC,
prior to the appointed time and
monitoring reports of the
for the public opening of
TSO, GPPB. Did the HOPE
Bids or other documents. recommend the
2. Identify the sanctions for the imposition of
b. Delaying, without offenses. penalty (ies)?
justifiable cause, the
b.1 screening for 3. Obtain copies of documents
eligibility, showing the actions taken by the
b.2 opening of bids, Procuring Entity in regard to the
b.3 evaluation offenses and imposition of
b.4 post qualification of sanctions/penalties.
bids,
b.5 and awarding of
contracts
c. Unduly influencing or
exerting undue pressure on
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Prepared by:
Commission on Audit
the Answer
c.1 any member of the
BAC or
c.2 any officer or
employee of the
procuring entity
to take a particular action

which favors, or tends to
favor a particular bidder.
d. Splitting of contracts

(IRR) of to RA 9184, as amended on
September 2, 2009:
65.1 Without prejudice to the

provisions of R.A. 3019 and other
penal laws, public officers who
commit any of the following acts
shall suffer the penalty of
imprisonment of not less than six
(6) years and one (1) day, but not
more than fifteen (15) years:
a) Opening any sealed bid

including but not limited to Bids
that may have been submitted
through the electronic system and
any and all documents required to
be sealed or divulging their
contents, prior to the appointed
time for the public opening of Bids
or other documents.
b) Delaying, without justifiable

cause, the screening for eligibility,
opening of bids, evaluation and
post evaluation of bids, and
awarding of contracts beyond the
prescribed periods of action
provided for in this IRR.
c) Unduly influencing or exerting

undue 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.
d) Splitting of contracts which

exceed procedural purchase limits
to avoid competitive bidding or to
circumvent the limits of approving
or procurement authority.
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Prepared by:
Commission on Audit
the Answer
2. To Verify if the HOPE 2. Consolidate the offenses
conducted investigation and committed by private individuals Appropriate Audit Working Papers showing
recommended the imposition with any official of the Procuring the Consolidated List of Offenses and
Entity mentioned in:
of sanctions/ penalties to possible sanctions/penalties, with
Audit Observation
private individuals and any Memoranda,
information on the actions taken by the
public officer conspiring with reports/comments of Procuring Entity
them, for any of the following observers,
violations: certified copies of project
monitoring reports prepared Did the HOPE
a. submission of falsified by the BAC as approved and initiate the conduct
eligibility documents, submitted by the HOPE to of investigation?
the GPPB,
relevant reports of the BAC,
b. submission of bids that
and Did the HOPE
contained false information, recommend the
monitoring reports of the
TSO, GPPB. imposition of
c. participating in public penalty (ies)?
bidding using the name of 2. Identify the sanctions for the
another, offenses.
d. allowing another to use 3. Obtain copies of documents

ones name to participate in a showing the actions taken by the
Procuring Entity in regard to the
public bidding,
offenses and imposition of
sanctions/penalties.
e. withdrawing a bid, after
he had been adjudged as the
LCB/HRB,
f. refusing to accept an
award and to enter into
contract , after he had been
adjudged as the LCRB/HRRB,
g. refusal or failure to post

the required performance
security,
h. termination of the
contract,
i. refusal to clarify or validate

in writing its bid during post
qualification within a period
of seven calendar days from
receipt of the request for
clarification,
j. withdrawing from bidding

habitually,
k. submitting late Bids or

patently insufficient bid for at
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Prepared by:
Commission on Audit
the Answer
least three (3) times within a
year.
l. attempt by a bidder to
unduly influence the outcome
of the bidding in his favor.

September 2, 2009:
65.3. Private individuals who

commit any of the following acts,
and any public officer
conspiring with them, shall upon
conviction, suffer the penalty of
imprisonment of not less than six
(6) years and one (1) day but not
more than fifteen (15) years:
a) 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.
b) Submitting Bidding Documents

of whatever kind and nature that
contain false information or
falsified documents or conceal
such information in the Bidding
Documents, in order to influence
the outcome of the public bidding.
c) Participating in a public bidding

using the name of another or
allowing another to use ones
name for the purpose of
participating in a public bidding.
d) Withdrawing a bid, after it shall

have qualified as the Lowest
Calculated Bid/Highest Rated Bid,
or refusing to accept an award,
without just cause or for the
purpose of forcing the procuring
entity to award the contract to
another bidder. This shall include
the non-submission within the
prescribed time, or delaying the
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Prepared by:
Commission on Audit
the Answer
submission of requirements such
as, but not limited to,
performance security, preparatory
to the final award of the contract.
69.1. the Head of the Procuring

Entity, subject to the authority
delegated to the BAC, if any, shall
impose on bidders or prospective
bidders, the administrative 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, as well as
disqualification from further
participating in the public bidding
being undertaken by the procuring
entity concerned, where
applicable, for the following
violations:
a) Submission of eligibility
requirements containing false
information or falsified documents.
b) Submission of Bids that contain

false information or falsified
documents, or the concealment of
such information in the Bids in
order to influence the outcome of
eligibility screening, or any other
stage of the public bidding.
c) Allowing the use of ones name,

or using the name of another for
purposes of public bidding.
d) Withdrawal of a bid, or refusal

to accept an award, or enter into
contract with the Government
without justifiable cause, after he
had been adjudged as having
submitted the Lowest Calculated
Responsive Bid or Highest Rated
Responsive Bid.
e) Refusal or failure to post the

required performance security
within the prescribed time.
f) Termination of the contract due

to the default of the bidder.
g) Refusal to clarify or validate in

writing its bid during post-
qualification within a period of
seven (7) calendar days from
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Prepared by:
Commission on Audit
the Answer
receipt of the request for
clarification.
h) Any documented attempt by a

bidder to unduly influence the
outcome of the bidding in his
favor.
i) All other acts that tend to defeat

the purpose of the competitive
bidding, such
as habitually withdrawing from
bidding, submitting late Bids or
patently insufficient bid, for at
least three (3) times within a year,
except for valid reasons.
3. To verify if the HOPE 3. Based on the Audit Was the ground or
exercised his power Observation Memorandum and reason of the
judiciously in the reports/ comments of HOPE for any of
observers, if any, on the following
performance of the following:
actions valid:
a. declaring failure of bidding
a. rejecting any and all bids
b. not awarding the contract a. declaration of
b. declaring failure of bidding failure of
c. disapproving the results of bidding?
c. not awarding the contract bid evaluation/ HRB
d. disapproving the results of d. disapproving the short list of b. non-award of

consultants the contract?
bid evaluation/ HRB
and documentation on the
e. disapproving the short list rejection of any and all bids, c. disapproval of
of consultants validate the grounds or reasons the results of
by the HOPE . bid evaluation/
Implementing Rules and Regulations HRB?
September 2, 2009:
d. disapproval of
65.1. the short listed
consultants?
e) Abuse by the Head of the
Procuring Entity of his power to
reject any and all bids as e. rejection of any
mentioned under Section 41 of the and all bids?
Act and this IRR, with manifest
preference to any bidder who is
closely related to him in NOTE:
accordance with Section 47 of the
For NO
Act and this IRR.
answers, the
Auditor may
41. Reservation Clause
conduct further
audit and enhance
The Head of the Procuring Entity
this Audit Guide
reserves the right to reject any
by incorporating
and all bids, declare a
the identified
failure of bidding, or not award
additional audit
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the Answer
the contract in the following objectives and
situations: criteria.
Otherwise, he/she
a) If there is prima facie evidence may recommend a
of collusion between appropriate fraud or
public officers or employees of the performance audit
procuring entity, or between the to the proper COA
BAC and any of the bidders, or if Office.
the collusion is between or among
the bidders themselves, or
between a bidder and a third
party, including any act which
restricts, suppresses or nullifies or
tends to restrict, suppress or
nullify competition;
b) If the BAC is found to have

failed in following the prescribed
bidding procedures; or
c) For any justifiable and

reasonable ground where the
award of the contract will not
redound to the benefit of the GOP,
as follows: (i) if the physical and
economic conditions have
significantly changed so as to
render the project no longer
economically, financially, or
technically feasible, as determined
Entity; (ii) if the project is no
longer necessary as determined by
the Head of the Procuring Entity;
and (iii) if the source of funds for
the project has been withheld or
reduced through no fault of the
procuring entity.
47. Disclosure of Relations
All bids shall be accompanied by a

sworn affidavit of the bidder that
it is not related to the Head of the
BAC, the TWG, and the BAC
Secretariat, the head of the PMO
or the end-user unit, and the
project consultants, by
consanguinity or affinity up to the
third civil degree. Failure to
comply with the aforementioned
provision shall be a ground for the
automatic disqualification of the
bid in consonance with Section 30
of this IRR. For this reason,
relation to the aforementioned
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Prepared by:
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the Answer
persons within the third civil
degree of consanguinity or affinity
shall automatically disqualify the
bidder from participating in the
procurement of contracts of the
procuring entity. On the part of
the bidder, this provision shall
apply to the following persons:
a) If the bidder is an individual or

a sole proprietorship, to the
bidder himself;
b) If the bidder is a partnership, to
all its officers and members;
c) If the bidder is a corporation, to
all its officers, directors, and
controlling stockholders;
and
d) If the bidder is a joint venture,
the provisions of items (a), (b),
or (c) of this Section shall
33.4. The entire evaluation

process, including the submission
of the results thereof to the Head
of the Procuring Entity for
approval, shall be completed in
not more than twenty-one (21)
for receipt of proposals. The
proposal with the highest score
shall be identified as the Highest
Rated Bid.
24.5.4. The BAC shall

recommend the short list of
consultants to the Head of the
Procuring Entity for consideration
and approval. The entire process
of eligibility check and short
listing shall not exceed twenty
(20) calendar days.
37.1.3. In the event the Head of

the Procuring Entity shall
disapprove such recommendation,
such disapproval shall be based
only on valid, reasonable, and
justifiable grounds to be expressed
in writing, a copy furnished the
BAC.

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Prepared by:
Commission on Audit
the Answer
Services Volume 4, June 2006,

the HOPE shall state the reasons
for disapproval and instruct the
BAC on the subsequent actions
to be adopted.

resulting contract;
the contract;
c. etc.
invited in writing.

Accounts
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Prepared by:
Commission on Audit

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2010-003

January 14, 2010

Government Procurement Policy Board (GPPB) Circular No.

Revised Implementing Rules and Regulations (IRR) of R.A. No.

Amendments to the Revised IRR of R.A. No. 9184 approved per

Public Bidding Documents 3rd Edition (October 2009) approved

Guidelines for Shopping and Small-Value Procurement

Amendments to the Revised IRR of RA 9184 approved per GPPB

Amendments to the Revised IRR of RA 9184 approved per GPPB

Technical Services Office

COA Memorandum adopting the Guide in the Audit of Procurement

The Development of the Audit Guide 2

II GENERAL INSTRUCTIONS ON THE USE OF THE GUIDE 7

III GUIDE IN THE AUDIT OF PROCUREMENT 10

On the Basic Elements

Bids and Awards Committee (BAC) 11

On the Procurement Procedures

COMPETITIVE / PUBLIC BIDDING FOR THE PROCUREMENT OF

X. Post-Qualification for the Procurement of Goods 137

ALTERNATIVE METHODS OF PROCUREMENT FOR GOODS 179

COMPETITIVE / PUBLIC BIDDING FOR THE PROCUREMENT

GUIDE IN THE AUDIT OF PROCUREMENT

ALTERNATIVE METHODS OF PROCUREMENT FOR

COMPETITIVE / PUBLIC BIDDING FOR THE PROCUREMENT OF

GUIDE IN THE AUDIT OF PROCUREMENT

ALTERNATIVE METHODS OF PROCUREMENT FOR

On Offenses and Sanctions / Penalties 676

1 List of Risks Associated with Procurement

2 Guidelines Clarifying the Procurement Activities which may be Undertaken Without

4 Amendments to the Revised Implementing Rules and Regulations (IRR) of Republic

6 Philippine Bidding Documents for the Procurement of Infrastructure Projects,

GUIDE IN THE AUDIT OF PROCUREMENT

8 Approving by Referendum, the Guidelines for Shopping and Small-Value

9 Approving Amendments to the Revised Implementing Rules and Regulations of

10 Approving Amendments to the Revised Implementing Rules and Regulations of

GUIDE IN THE AUDIT OF PROCUREMENT

The magnitude of the operations of the Government makes it undoubtedly the

In its continuing efforts to promote good governance the Government has

The 1987 Constitution provides for an independent Commission on Audit (COA)

This Guide is intended as a reference and guidance material for COA

The public is likewise encouraged to provide feedback to improve the Guide,

C. SCOPE AND LIMITATIONS OF THE GUIDE

Procurement refers to the acquisition of goods, consulting services, and the

The scope of the Guide is limited to the following:

3. Offenses and Penalties

The Guide may be used as a reference in the:

evaluation of compliance with the requirements of applicable laws, rules and

review of bidding procedures, necessity and validity of other alternative

2. Revised Implementing Rules and Regulations (IRR) of R.A. No. 9184,

3. Amendments to the Revised IRR approved per Government Procurement

5. Approving by Referendum, the Guidelines for Shopping and Small-Value

7. Amendments to the Revised IRR approved per Government Procurement

Amendments, revisions, repeal, and other changes in the above-mentioned law,

a. World Banks Country Procurement Assessment Report (Philippines) 2008, p. 14

b. World Banks Country Procurement Assessment Report (Philippines) 2008, p. 17

c. World Banks Country Procurement Assessment Report (Philippines) 2008, p. 37

Procurement as defined in R.A. No. 9184 should be identified as an audit area.

If no changes/updates have occurred, the Audit Guide may be used as is.

Step 4 Determine the audit sub-objectives.

The Guide is to be used according to the following sequence:

At any time during the Audit Period prior to Any Procurement

1st: Basic Element Bids and Awards Committee (BAC)

2nd: Basic Element - BAC Secretariat