THE 2016 REVISED IMPLEMENTING RULES AND REGULATIONS

1. UNDERSTANDING REPUBLIC ACT NO. 9184 IN
RELATION TO PROCUREMENT DONE IN
SCHOOL

2. WHAT IS THE POLICY BEHIND RA 9184?
To promote good governance and its effort to adhere to
the principles of transparency, accountability, equity,
efficiency, and economy in its procurement process. It is
the policy of the GoP that procurement of Goods,
Infrastructure Projects and Consulting Services shall be
competitive and transparent, and therefore shall
undergo competitive bidding, except as provided by the
law and its IRR.

3. WHAT IS THE SCOPE OF RA 9184?
It shall apply to all procurement of any branch, agency,
department, bureau, office, or instrumentality of the GoP,
including government-owned and/or -controlled corporations
(GOCCs), government financial institutions (GFIs), state
universities and colleges (SUCs), and local government units
(LGUs).

4. WHAT ACTIVITIES ARE NOT COVERED BY THE PROCUREMENT LAW?
1. Procurement of Goods, Infrastructure Projects and Consulting
Services funded from Foreign Grants covered by R.A. 8182, as
amended by R.A. 8555, entitled “An Act Excluding Official
Development Assistance (ODA) from the Foreign Debt Limit in order
to Facilitate the Absorption and Optimize the Utilization of ODA
Resources, Amending for the Purpose Paragraph 1, Section 2 of R.A.
4860, As Amended,” unless the GoP and the foreign grantor/foreign
or international financing institution agree otherwise;

5. 2. Acquisition of real property which shall be governed by R.A.
10752, entitled “An Act Facilitating the Acquisition of Right-Of-
Way Site or Location for National Government Infrastructure
Projects,” and other applicable laws, rules and regulations; and
3. Public-Private sector infrastructure or development projects and
other procurement covered by R.A. 6957, as amended by R.A. 7718,
entitled “An Act Authorizing the Financing, Construction, Operation
and Maintenance of Infrastructure Projects by the Private Sector,
and for Other Purposes,” as amended: Provided, however , That for
the portions financed by the GoP, in whole or in part, the provisions
of the Act and this IRR shall apply.

6. THE FOLLOWING ARE NOT CONSIDERED PROCUREMENT ACTIVITIES:
1. Direct financial or material assistance given to beneficiaries in
accordance with the existing laws, rules and regulations, and
subject to the guidelines of the concerned agency;
2. Participation in local or foreign scholarships, trainings,
continuing education, conferences, seminars or similar activities
that shall be governed by applicable COA, CSC, and DBM rules;

7. 3. Lease of government-owned property as lessor for private use;
4. Hiring of Job Order Workers;
5. Joint Venture under the revised NEDA Guidelines (GOCC and Private
Entities), and Joint Venture Agreements by LGU with Private entities;
and
6. Disposal of Property and Other Assets of the Government

8. PRIOR TO PROCUREMENT, THE SCHOOL MUST PREPARE ITS
ANNUAL PROCUREMENT PLAN OR THE SCHOOL’S APP
Refers to the meticulously and judiciously planned
procurement by the Procuring Entity. Consistent with
government fiscal discipline measures, only those considered
crucial to the efficient discharge of governmental functions
shall be included in the Annual Procurement Plan (APP)

9. No procurement shall be undertaken unless it is in accordance with
the approved APP, including approved changes thereto. The APP
must be consistent with the duly approved yearly budget of the
Procuring Entity and shall bear the approval of the HoPE or second-
ranking official designated by the HoPE to act on his behalf
In the preparation of the indicative APP, the end-user or
implementing units of the Procuring Entity shall formulate their
respective Project Procurement Management Plans (PPMPs) for
their different programs, activities, and projects (PAPs).

10. Who is responsible in the procurement of schools?
ALL PROCUREMENT OF THE SCHOOL MUST BE
UNDERTAKEN BY THE BIDS AND AWARDS COMMITTEE
WHO WILL ESTABLISH THE BAC?
THE SCHOOL HEAD OR THE HEAD OF THE PROCURING
ENTITY IS THE ONE VESTED WITH POWER TO
ESTABLISH THE BIDS AND AWARDS COMMITTEE OF
THE SCHOOL

11. The HoPE shall designate at least five (5) but not more than seven
(7) members to the BAC of unquestionable integrity and
procurement proficiency.
THE MEMBERS OF THE BAC MUST BE A PERMANENT EMPLOYEE
OR OFFICER OF THE UNIT.
In no case shall the HoPE and/or the approving authority be the
Chairperson or a member of the BAC.

12. WHAT IS THE TENURE OF OFFICE OF THE BAC MEMBERS?
Unless sooner removed for a cause, the members of the BAC shall
have a fixed term of one (1) year reckoned from the date of
appointment, renewable at the discretion of the HoPE. Upon
expiration of the terms of the current members, they shall
continue to exercise their functions until new BAC members are
designated

13. In case of resignation, retirement, separation, transfer, re-
assignment, removal, or death, the replacement shall serve
only for the unexpired term: P r o vid e d , h o w e v e r, That in
case of leave or suspension, the replacement shall serve only
for the duration of the leave or suspension. For justifiable
causes, a member shall be suspended or removed by the
HoPE.

14. The BAC shall have the following functions:

15. (a) advertise and/or post the invitation to bid/request for expressions
of interest;
(b) conduct pre-procurement and pre-bid conferences;
(c) determine the eligibility of prospective bidders;
(d) receive and open bids;
(e) conduct the evaluation of bids;

16. (f) undertake post-qualification proceedings;
(g) resolve requests for reconsideration;
(h) recommend award of contracts to the HoPE or his duly
authorized representative
(i) recommend the imposition of sanctions in accordance with Rule XXIII;
(j) recommend to the HoPE the use of Alternative Methods of
Procurement as provided in Rule XVI hereof;

17. k) conduct any of the Alternative Methods of Procurement;
l) conduct periodic assessment of the procurement processes and
procedures to streamline procurement activities pursuant to
Section 3(c) of this IRR; and m) perform such other related
functions as may be necessary, including the creation of a
Technical Working Group (TWG)

18. A majority of the total BAC composition as designated by the HoPE
shall constitute a quorum for the transaction of business, provided
that the presence of the Chairperson or Vice-Chairperson shall be
required.
The Chairperson or, in his absence, the Vice-Chairperson, shall preside
at all meetings of the BAC. The decision of at least a majority of those
present at a meeting at which there is quorum shall be valid and
binding as an act of the BAC: Provided, however, That the Chairperson
or, in his absence, the Vice-Chairperson, shall vote only in case of a
tie.

19. AS PER RA 9184 ALL PROCUREMENT MUST BE DONE THROUGH
COMPETITIVE BIDDING, HOWEVER THERE ARE INSTANCES THAT THE
PROCURING ENTITY MAY RESORT INTO ALTERNATIVE MODE OF
PROCUREMENT. THE PERTINENT PROVISION IS FOUND IN RULE XVI
SECTION 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. In all instances, the
Procuring Entity shall ensure that the most advantageous price for the
Government is obtained.

20. WHAT ARE THE ALTERNATIVE MODE OF PROCUREMENT?
Limited Source Bidding
Direct Contracting
Repeat Order
Shopping
Negotiated Procurement

21. TWO MOST COMMON USED METHOD OF NEGOTIATED
PROCUREMENT:
TWO FAILED BIDDING
SMALL VALUE PROCUREMENT

22. What is procurement by SHOPPING?
This 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.

23. This method of procurement shall be employed in any of the
following cases:
a) When there is an unforeseen contingency requiring
immediate purchase, the amount shall not exceed the
following:
i. For NGAs, GOCCs, GFIs, SUCs, and Autonomous
Regional Government, Two Hundred Thousand Pesos
(₱200,000)

24. b) Procurement of ordinary or regular office supplies and equipment not
available in the DBM-PS, in the amount not to exceed the following:
i. For NGAs, GOCCs, GFIs, SUCs, and Autonomous Regional Government,
One Million Pesos (₱1,000,000)
The phrase “ordinary or regular office supplies” shall be understood to
include those supplies, commodities, or materials which are necessary in the
transaction of its official businesses, and consumed in the day-to-day office
operations. 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.

25. PROCEDURE FOR SHOPPING UNDER SECTION 52.1(A)
i. The End-User unit or the duly authorized official or personnel shall
submit a purchase request to the BAC indicating the urgency to
address an identified need of the Procuring Entity and the
unforeseen contingency that caused its necessity.
ii. The BAC shall immediately prepare the RFQ, indicating
the specifications, quantity, ABC, and other terms and
conditions of the contract.

26. iii. The RFQ may be sent directly to the supplier of known technical,
legal and financial qualifications. Due to the attendant
circumstances and the urgency of the procurement, the supplier
shall immediately respond to the RFQ and signify its technical, legal
and financial capability to supply and deliver the goods to be
procured. Posting of the RFQ may be dispensed with.
iv. The BAC shall immediately validate the technical, legal and
financial capability of the supplier to supply and deliver the goods
by requiring the submission of relevant documents or through
other verifiable means to prove the capability of the Supplier.

27. v. Upon confirmation and ascertainment of such capability,
the BAC shall recommend to the HOPE the award of contract
in favor of the supplier with the Single or Lowest Calculated
and Responsive Quotation. In case of approval, the HOPE
shall immediately enter into a contract with the said
supplier.

28. FOR SHOPPING UNDER SECTION 52.1 (B)
i. The End-User unit or the duly authorized official or personnel shall
submit a purchase request to the BAC relative to the goods to be
procured through Shopping.
ii. The BAC shall prepare the RFQ, indicating the specifications,
quantity, ABC, and other terms and conditions of the contract.

29. iii. Except for those with ABCs equal to Fifty Thousand Pesos
(₱ 50,000.00) and below, RFQs shall be posted for a period of
at least three (3) calendar days in the PhilGEPS website,
website of the Procuring Entity, if available, and at any
conspicuous place reserved for this purpose in the premises
of the Procuring Entity.

30. iv. The BAC shall send the RFQs to at least three (3) suppliers of known
qualifications, and at least three (3) price quotations must be obtained.
This, notwithstanding, those who responded through any of the required
postings shall be allowed to participate.
v. The deadline for submission may be extended thrice, if none or less
than the required number of quotations are received. For ABCs more
than Fifty Thousand Pesos (₱50,000.00), extensions of deadline shall
likewise be posted for a period of three (3) calendar days in the PhilGEPS,
the website of the Procuring Entity, if any, and at any conspicuous place
in the Procuring Entity’s premises. In case no supplier responded after
the third extension, the BAC shall conduct a mandatory review in
accordance with Section IV(K) of this Guidelines.

31. vi. Upon receipt of at least three (3) quotations within the prescribed
deadline, the BAC shall prepare an Abstract of Quotations setting
forth the names of those who responded to the RFQ, their
corresponding price quotations, and the lowest calculated quotation
submitted.
vii. The BAC shall validate the technical, legal and financial capability of
the supplier to supply and deliver the goods.

32. viii. Upon confirmation and ascertainment of such capability,
the BAC shall recommend to the HOPE the award of contract in
favor of the supplier with the Lowest Calculated and
Responsive Quotation. In case of approval, the HOPE shall
immediately enter into a contract with the said supplier.

33. SMALL VALUE PROCUREMENT (SVP) 46
a) Definition. Procurement of (a) goods not covered by Shopping
under Section 52 of the IRR of RA 9184, (b) infrastructure
projects, and (c) consulting services, where the amount involved
does not exceed the following threshold:
i. For NGAs, GOCCs, GFIs, SUCs, and Autonomous
Regional Government, One Million Pesos (₱
1,000,000)

34. i. The End-User shall submit a request for SVP to the BAC, which
indicates the technical specifications, scope of work, terms of
reference, ABC and other terms and conditions.
ii. The BAC shall prepare and send the RFQs/RFPs to at least three (3)
suppliers, contractors or consultants of known qualifications. This,
notwithstanding, those who responded through any of the required
postings shall be allowed to participate. Receipt of at least one (1)
quotation is sufficient to proceed with the evaluation thereof.

35. iii. Except for those with ABCs equal to Fifty Thousand
Pesos (₱ 50,000.00) and below, RFQs shall be posted for
a period of three (3) calendar days in the PhilGEPS
website, website of the Procuring Entity, if available, and
at any conspicuous place reserved for this purpose in
the premises of the Procuring Entity.

36. iv. Pre-bid conference may be conducted at the discretion of the
BAC, in order to clarify and/or explain any of the requirements,
terms, conditions, and specifications stipulated in the RFQ/RFP.
v. After the deadline for submission of quotations/proposals, an
Abstract of Quotations/Ratings shall be prepared setting forth the
names of those who responded to the RFQ/RFP, their
corresponding price quotations/ratings.

37. vi. The BAC shall recommend to the HOPE the award of
contract in favor of the supplier or contractor with the Single or
Lowest Calculated and Responsive Quotation (for goods or
infrastructure projects), or consultant with the Single or
Highest Rated and Responsive Proposal (for consulting
services). In case of approval, the HOPE shall immediately enter
into contract with the said supplier, contractor or consultant.

38. DOCUMENTS TO BE PREPARED IN EITHER OF SHOPPING OR
SMALL VALUE PROCUREMENT:
1. PURCHASE REQUEST
2. BAC RESOLUTION RECOMMENDING TO THE HOPE THE
MODE OF PROCUREMENT
3. CERTIFICATE OF POSTING
4. CANVASS FORM TO BE FILLED UP BY THE BIDDER/
PROPONENT

39. 5. ABSTRACT OF CANVASS
6. PURCHASE ORDER
7. INSPECTION AND ACCEPTANCE REPORT
8. OFFICIAL RECEIPT ISSUED BY THE SUPPLIER

40. DOCUMENTS REQUIRED FROM THE SUPPLIER BEFORE PAYMENT CAN
BE EFFECTED:
Alternative
Modality
Mayor’s/
Business
Permit &
DTI REG/SEC
REG
Professional
License
/Curriculum
Vitae
(Consulting
Services)
PhilGEPS
Reg.
Number
PCAB
License
(Infra.)
NFCC (Infra.) Income/
Business Tax
Return
Omnibus
Sworn
Statement
SHOPPING V V
SMALL
VALUE
V V V V V V

41. “the most free person in the world is the one who
has nothing to hide”
James Altucher