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Copy of Ordering Agreement

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chat osdon

on 11 June 2013

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Transcript of Copy of Ordering Agreement

Guidelines on the Use of Ordering Agreement Scope and Application General Provisions Annual Procurement Plan Delivery Order Contract Implementation and Termination Goods necessary and desirable to address and satisfy the needs of the procuring entity, but by its nature, use, or characteristic, the quantity and/or exact time of need cannot be accurately pre-determined

May be used for expendable or non-expendable goods, and services for hotel accommodation, air travel, and repair and maintenance

Not cover procurement of consulting services and infrastructure projects Definition of Terms Delivery Order Contract
contract that authorizes and obligates a supplier/service provider to deliver certain quantity or render a particular service within an agreed period and at a fixed price per unit, item or identified service

triggers the exercise by the PE of the option to purchase in the amount, quantity, and extent not exceeding those projected in the Order Agreement List (OAL) Ordering Agreement
written agreement in the nature of an option contract between the PE and the LCRB

grants the PE the option to either place an order for any of the goods identified in the Order Agreement List (OAL) or not buy at all, within a given period of time Order Agreement List (OAL)
refers to the list of goods, and their corresponding technical specifications, scope of work, projected quantities, and fixed prices, subject of the Ordering Agreement

limited to goods that are:
identified to be necessary and desirable, but, by its nature, use, or characteristic, the quantity and/or exact time of need cannot be accurately pre-determined; and
using an Ordering Agreement is most practical, economical, and advantageous for the PE Definition of Terms Definition of Terms General Conditions Requirements HOPE determines that using Ordering Agreement will be more advantageous

Procurement is conducted following Competitive Bidding procedures 1. End-user's certification states that the goods are necessary and desirable for the operations of the PE, and supported by:
Document establishing the need for the acquisition
Market study establishing the ABC for each of the goods HOPE should have considered that the: 2. Result of cost-benefit analysis supports the appropriateness of using Ordering Agreement by establishing benefits such as:
Significantly reduced costs and risks of stocking or warehousing of goods
Lessened additional cost due to minimized possibility of delay in acquisition
More efficient means of supplying goods borne by commitment of supplier to deliver immediately
Advantages from fixed pricing for a fixed duration
Optimum usage of ABC due to acquisition at time of actual need
Achieves benefits of lean and just-in-time procurement 3. Order Agreement List is prepared in the most practical, efficient, and economical manner that will encourage competition among bidders in relevant industry HOPE should have considered that the: HOPE should have considered that the: Prices indicated in the Ordering Agreement corresponding to the items listed in the OAL shall be fixed for the duration of the agreement, regardless of increase or decrease in the prevailing market price at the time of actual purchase Rule on Price Contents of Ordering Agreement Order Agreement List
Terms and clauses for Delivery Order Contracts
Methods for issuing or delivering/performing future orders Indicate the types of items considered for inclusion in the OAL

Include an OAL, which shall remain unchanged, neither to be increased or decreased after advertisement and during its life span Annual Procurement Plan PE shall carefully examine and identify its needs and the probable time, period, event, or occasion the ordering may take place using, whenever applicable, assessment of
Total Cost of Ownership
Life Cycle Costing
Value for Money Analysis Contents of OAL Type and nature of each item
Technical specifications or Scope of Work
Estimated quantity of items or services
Estimated contract price per item or service
Total ABC, including budgetary allotments per type of product or service
Other appropriate necessary information Procurement Planning Estimated Contract Price Consider variables and factors that may affect future market prices using historical data, market study, feasibility study, and/or net present value of money Estimated Quantity Based on the expected number required in case the need arises

Maximum quantity allowed to be purchased, which the supplier/service provider is bound to deliver or perform Ordering Agreement Method of Procurement Competitive bidding - single stage, two-envelope procedure

Option of PE to allow bidders to submit offer per lot/item/package basis

IB should indicate that the contract will be subjected to an Ordering Agreement arrangement Competitive Bidding Bidding Documents Contents Separate Technical Specifications or Scope of Work for every line item, whenever applicable, and indicate, among others:
ABC for each line item
Estimated quantity
Requested delivery/performance lead time from Delivery Order Contract or any determined date Characteristics Entered into within 10cd from receipt of NOA for a consideration of One Peso (PhP1.00)

Shall not state or imply agreement to place future contracts or make orders

No modification during its lifetime

Valid for a non-extendible period stated in the Bidding Documents, which should not exceed one (1) year

Performance security based on the total contract price of the awarded items Contents of the Ordering Agreement Order Agreement List

Fixed contract price per item/service specified in the OAL

Delivery/Service terms and conditions

Terms of payment

Statement that perfection of actual procurement contract is reckoned from the execution and issuance of Delivery Order Contract (DOC)

Statement that upon execution and issuance of DOC, all rules and guidelines governing implementation of contracts under RA 9184 applies Characteristics Executed when the need for any of the item/service covered by the Ordering Agreement arises

Signals the supplier/service provider to deliver/perform the identified item/service stated in the Ordering Agreement

No limit on the number of times issued, but aggregate of the items/services covered should not exceed the total contract price in the Ordering Agreement

No other costs are authorized unless otherwise specified in the Ordering Agreement

May specify multiple locations for delivery/performance SLCC for Other Procurement The aggregate of the Delivery Order Contracts for a particular item/service satisfactorily completed shall be considered as one (1) contract with the cumulative amount thereof as the total contract amount

The date appearing in the certificate of acceptance issued by the PE for the last delivery/performance will be considered as the date of completion of the contract Warranty Security Expendable supplies - minimum of 3 months

Non-expendable supplies - minimum of 1 year

Retention money at least 10% of every progress payment

Bank guarantee at least 10% of total contract

Released after lapse of warranty period or after consumption Delivery or Performance Delivered/Performed within the period specified in the Ordering Agreement, unless a different time is provided in the Deliver Order Contract

Extension of time may be allowed upon approval by the HOPE of the written request for reasonable and justifiable causes

Liquidated damages at .001 of the cost of the unperformed portion of the total amount of the awarded items shall be imposed for every day of delay Termination of Ordering Agreement Rescinded once the cumulative amount of liquidated damages reaches 10% of the total amount of the awarded items

Automatically terminated when:

the total estimated quantity specified in the Ordering Agreement has been exhausted; or

specified duration of the Ordering Agreement has expired Repeat Order Only after the PE has exhausted the estimated quantity for the specified item therein or after the Ordering Agreement has expired

Conditions under Section 51 of RA 9184 and its revised IRR are complied with

25% maximum allowable quantity shall be based on the aggregate quantity of actual items ordered and delivered Comments? Questions? Thank you Dennis Lorne S. Nacario Deputy Executive Director, GPPB-TSO Unit 2506 Raffles Corporate Center, F. Ortigas Jr. Road, Ortigas Center, Pasig City
(02) 9006741 to 44
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