CE LAWS

RULE XV –
DISCLOSURE OF
RELATIONS
SECTION 47. DISCLOSURE OF RELATIONS

 47.1 All bids shall be accompanied by a sworn

affidavit of the bidder that it is not related to the HoPE,
members of the BAC, the TWG, and the BAC
Secretariat, the head of the PMO or the end-user or
implementing 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.
 RULE XVI

ALTERNATIVE METHODS OF
PROCUREMENT
 Section 48. Alternative Methods

 48.1. Subject to the prior approval of the HoPE,

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
Section 49. Limited Source Bidding

 49.1 Limited Source Bidding, otherwise known as

selective bidding, is a method of procurement of
Goods and Consulting Services that involves direct
invitation to bid by the Procuring Entity from the list of
pre-selected suppliers or consultants.
 49.2 The pre-selected suppliers or consultants shall be
those appearing in a list maintained by the relevant
government authority that has expertise in the type of
procurement concerned.
Section 50. Direct Contracting

 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.
Section 51. Repeat Order

 RepeatOrder 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.
Section 52. Shopping

 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.
Section 53. Negotiated Procurement

 Negotiated Procurement is a method of

procurement of Goods, Infrastructure Projects
and Consulting services, whereby the Procuring
Entity directly negotiates a contract with a
technically, legally and financially capable
supplier, contractor or consultant in any of the
following cases:
 53.1. Two Failed Biddings.
 53.2. Emergency Cases.
 53.3. Take-over of Contracts.
 53.4. Adjacent or Contiguous.
 53.5. Agency to Agency.
 53.6.
Scientific, Scholarly or Artistic Work, Exclusive
Technology and Media Services.
 53.7. Highly Technical Consultants
 In the case of individual consultants hired to do work that
is:
i. highly technical or proprietary
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 HoPE, but in no
case shall exceed the term of the latter.
 53.8. 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.
53.9. Small Value Procurement.

 Procurement of Goods, Infrastructure Projects

and Consulting Services, where the amount
involved does not exceed the threshold
prescribed in Annex "H" of this IRR: Provided,
That in case of Goods, the procurement does
not fall under shopping in Section 52 of this IRR.
53.10.Lease of Real Property and Venue

 Lease of real property and venue for

official use, subject to Annex “H” of this
IRR.
53.11.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 the guidelines16 issued by
the GPPB for the purpose.
53.12.Community Participation.

 Where, in the interest of project sustainability or to

achieve certain specific social objectives, it is
desirable in selected projects, or its components,
to call for participation of local communities in
the delivery of goods, including non-consulting
services, and simple infrastructure projects,
subject to the Community Participation
Procurement Manual (CPPM) issued by the GPPB.
 53.13.United Nations Agencies,
International Organizations or International
Financing Institutions.

 Procurement from specialized agencies of the United

Nations, International Organizations or International
Financing Institutions, of any of the following:
A. small quantities of off-the-shelf goods, primarily in the
fields of education and health;
B. specializedproducts where the number of suppliers is
limited, such as but not limited to vaccines or drugs.
Section 54. Terms and Conditions for
the use of Alternative Methods

 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, particularly the necessity of competitive bidding
and the requirements for the alternative methods of
procurement.
 ForInfrastructure Projects to be implemented by
phases, the Procuring Entity shall ensure that
there is a clear delineation of work for each
phase, which must be usable and structurally
sound.
 Itshall also ensure the conduct of the detailed
engineering activities for each phase as
provided for in Annex “A” of this IRR.
GRACIAS
 ANNEX D
CONTRACT IMPLEMENTATION GUIDELINES
FOR THE PROCUREMENT OF GOODS, SUPPLIES
AND MATERIALS
 4. ADVANCE PAYMENT

4.1. In accordance with Presidential Decree 1445,

advance payment shall be made only after prior approval
of the President, and shall not exceed fifteen percent (15%)
of the contract amount, unless otherwise directed by the
President

4.2 All progress payments shall first be charged against

the advance payment until the latter has been fully
exhausted, unless otherwise approved by the President.
4.3. A single advance payment not to exceed fifty
percent (50%) of the contract amount shall be allowed for
contracts entered into by a procuring entity for the
following services where requirement of down payment is
a standard industry practice:

a) Hotel and restaurant services;

b) Use of conference/seminar and exhibit areas; and
c) Lease of office space.
4.4. Advance payment not to exceed fifteen percent
(15%) of the contract amount, unless otherwise
directed by the President, shall also be allowed for
procurement of goods required to address
contingencies arising from natural or man-made
calamities in areas where a “State of Calamity” has
been declared by appropriate authorities.
4.5. Upon submission of an irrevocable letter of credit or
bank guarantee issued by a Universal or Commercial
Bank, advance payment not to exceed fifteen percent
(15%) of the contract amount shall be allowed and paid
within sixty (60) calendar days from signing of the
contract.
5. OTHER RULES AND GUIDELINES

The rules and regulations for the other aspects of

contract implementation shall be included in the
manuals to be issued by the GPPB, such as, but not
limited to, the following:

a) Incidental Services;
b) Spare Parts;
c) Delays in the Supplier’s Performance;
d) Purchaser’s Responsibilities;
e) Prices; m) Inspections and Tests;
f) Payment; n) Patent Rights;
g) Taxes and Duties; o) Limitations of Liability;
h) Subcontracts; p) Termination for Default;
i) Standards; q) Termination for Insolvency;
j) Packing; r) Termination for Convenience; and
k) Insurance; s) Assignment.
l) Transportation;