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bidding procedure for consulting services

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chat osdon

on 26 May 2015

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Transcript of bidding procedure for consulting services

for the

We will discuss the

The term refers to services for Infrastructure Projects and other types of projects or activities of the Government requiring adequate external technical and professional expertise that are beyond the capability and/or capacity of the government to undertake.
advisory and review services
pre-investment or feasibility studies
construction supervision
management and related services
other technical services or special studies
or juridical
Qualified by
Subject to the requirements for eligibility check and post-qualification
Who maybe hired as CONSULTANTS?
Individual – Filipino citizen (duly licensed)
Sole proprietorship – owner is Filipino citizen
Partnership, Corporation, Joint Venture, Cooperatives – at least 60% Filipino owned
In the event that Filipino consultants do not have sufficient expertise and capability to render the services required under the project, as determined by the head of the procuring entity (HOPE).
Registered with the SEC or any agency authorized by the laws of the Philippines.
Authorized by the appropriate professional regulatory body.
and HIRED if:

Beyond the capability of the Procuring Entity to undertake:
>does not have the expertise
>could not devote enough time to the work due to numerous other assignments
Not inconsistent with the government’s policy of not competing with the private sector
May government employees be hired as consultants?
Full-time consultant
>On leave of absence
>Will not violate rule against holding multiple positions in government
>Permitted or authorized by his/her head of agency
>No conflict with his/her official functions and the interest of the government
Part-time consultant
>Satisfy last three conditions above
>Effective performance of his duty is not affected
Umbrella Organization of Consultants

>Composed of various organizations of consultants

>Accredits technically and financially qualified members on the types of services and fields of professions

>Prepares and certifies a list of fields where Filipino consultants can provide competent consulting services
How to know if there are Filipino experts?
Pre-Procurement Conference
When Required?
Above 1M ABC

When Conducted?
At least 7 CD prior to the date of advertisement and/or 1st day of posting of the Request for Expression of Interest (REI)

Who Attends?
Procuring Unit or Officials
What should a pre-procurement conference achieve?

Ensure procurement is in accord with the PPMP and APP
Determine the feasibility of procurement
Availability of appropriations
Completeness of Bidding Documents
Agree on the following criteria:

for eligibility screening
for short listing, including the weights for each criterion and the minimum score required
for evaluation of proposals, including the evaluation procedure (QBE or QCBE) and the corresponding weights for the technical and financial proposals

Determine actual number of consultants in the short list
3 to 7, with 5 as the preferable number
Reiterate and emphasize the “no contact” rule during bid evaluation
Ensure that requirements are in accord with the ABC
Advertisement and Posting
Eligibility Requirements
When and how submitted?

Submitted on or before the deadline specified in the REI

Sealed envelopes containing the required Legal, Technical, and Financial documents

Class “A” Documents
Legal Documents
DTI /SEC/CDA Registration Certificate
Mayor’s permit from principal place of business
Tax Clearance

Technical Documents
Statement of ongoing and completed projects
Statement on nationality and professional eligibility (includes CV)

Financial Documents
Audited financial statement received by the BIR
Class “B” Document
JVA; or
Notarized statements from all potential partners that they will enter into and abide by the JVA if awarded the contract

How Eligibility Check conducted?

Non-discretionary pass/fail criteria as stated in the REI and the Eligibility Docs
Declare as eligible or ineligible
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 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.
Eligibility Criteria
a. Duly licensed Filipino citizens/sole proprietorship;
b. Partnerships -Filipino interest is at least sixty percent (60%)
c. Corporations - Filipino ownership is at least sicty percent (60%) of the outstanding capital stock;
d. Cooperatives - Filipino ownership is at least sixty percent (60%); or
e. Persons/entities forming themselves into a joint venture provided, however, that Filipino ownership or interest shall be at least sixty percent (60%).
General Rule:
60% Filipino!
Foreign consultants may be hired in the event Filipino consultants do not have the sufficient expertise and capability, as determined by the HOPE
>Registered with SEC and/or may agency authorized by Philippine laws
>Authorized by the appropriate GOP professional regulatory body
Process of determining the most qualified consultants from those that submitted eligibility requirements.

Who shall be considered for short listing?
The Procuring Entity must consider for short listing only those consultants that:
Have been declared eligible by the BAC; and
Have had implemented completed contracts, as stated in their eligibility documents, that are similar in nature and complexity to the project, as described in the REI.
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: applicable experience of consultant, qualification of personnel to be assigned, current workload relative to job capacity.
Short Listing Criteria and Recommended Weights
What is a Pre-Bid Conference?

The pre-bid conference is the initial forum where the Procuring Entity’s representatives and the prospective bidders discuss the different aspects of the procurement at hand.
ground rules
legal, technical, and financial components

An opportunity for the short listed consultants to request for clarifications about the bidding documents.

Who must attend the Pre-bid Conference?

BAC Secretariat;
End-user Unit/PMO;
Technical experts on the consulting services to be procured; and
Short listed consultants.
What are the rules on Pre-Bid Conference?

At least 1 required for bids with ABC of ≥ 1M

Discretionary for bids costing < 1M

Attendance of bidders not mandatory

Held at least 12/30 cd before deadline for Submission and Opening of Bids

Statements made therein do not modify the terms of the bidding documents unless specified in a supplemental/bid bulletin.
Two Sealed Bid Envelopes

Technical Component:

Bid Security
Organizational Chart
List of completed and on-going projects
Approach, work plan and schedule
List of Key personnel to be assigned, with complete qualification and experience data
Omnibus Sworn Statement

Financial Component:
As specified in the PBDs
Bid Evaluation
How are bids evaluated?

Rated numerically, either collegially or individually
Evaluate as a group
Rate is the consensus of the evaluators

Each evaluator assigns numerical rates to a proposal
Rates are tabulated and ranked in descending order
Highest and lowest rates are disregarded

Numerical ratings based on either QBE or QCBE Procedure

The ranking of the bidders based on the numerical ratings from the highest to the lowest.
Bid Evaluation

QBE Procedure
- considers only the Technical Proposals in the ranking of consultants.

Complex or highly specialized assignments for which it is difficult to precisely define the TOR and the required inputs from the consultants; and
Where the assignment can be carried out in substantially different ways, such that the proposals are not comparable.

QCBE Procedure
- both the Technical and Financial Proposals in the ranking of consultants.
Technical Proposal Criteria and
Recommended Weights
Opening of Technical Proposals only
Evaluation and Ranking of Technical Proposals
BAC Recommendation for approval of HRB
Approval/Disapproval of BAC recommendation
Notification of HRB for negotiations
Opening of Financial Proposal and Negotiations
Process Flow (QBE)
Opening and Evaluation of Technical Proposals of shortlisted consultants
Notification of Short Listed consultants that earned required rating
Opening and Evaluation of Financial Proposal
Ranking and determination of HRB
Approval/Disapproval of BAC recommendation
Notification of HRB for negotiations
Process Flow for QCBE
Contract Implementation and Termination
Advance Payment

Not to exceed 15% of the total contract price (mobilization fund)

Procedural requirements:
Submit written request
Issue irrevocable standby letter of credit in an amount equal to the advance payment

Recovered by deducting from progress payments agreed upon during contract negotiations until fully liquidated

Consultant may reduce standby LC by the amounts refunded in the advance payment
Notice and Execution of Award
What documents form part of the contract?
Contract Agreement;
Bidding Documents;
Winning bidder’s bid, including Eligibility Requirements, Technical and Financial Proposals, and all other documents submitted;
Performance Security;
NOA of Contract;
Other contract documents that may be required by existing laws and/or PE concerned in the Bidding Documents.
Notice and Execution of Award
When shall contract award be made?
Within the bid validity period

What happens to the Notice of Award?
The BAC, thru the Secretariat, shall post within 3 CDs from issuance in the PhilGEPS, PE’s website, if any, and conspicuous place in the PE’s premises.
What to do?
Verify, validate and ascertain all statements made and documents submitted by the bidder with HRB using non-discretionary criteria.
Not blacklisted
Stated Competence and Experience
Availability and Commitment
How long is the period for negotiation?

Completed within 10 cd, except for meritorious reasons

What happens if negotiation with HRB fails?

BAC terminates negotiations and invite the next ranked consultant for negotiations
Contract Implementation and Termination
What are the rules on liquidated damages?

Amount is 1/10 of 1% of the cost of unperformed portion for every day of delay

Automatically rescind contract when sum of liquidated damages reaches 10% of the contract amount
Contract Implementation and Termination
Cost of Consulting Services

Shall be fixed price contracts
Computed on the basis of cost to the consultant of actual services to rendered plus a reasonable level of management fee.
Remuneration Costs
Reimbursable Costs
Contingency (must not exceed 5% of the contract amount).

What happens during extension of contract?
Shall not involve additional cost.
Notice and Execution of Award
Contract Approval by Higher Authority
Within 15 CDs.
For GOCCs, within 25 CDs.

Notice to Proceed
Shall be issued together with a copy of the approved contract to the successful bidder within 3CDs from the date of the approval of the contract.
Contract effectivity date shall be provided – not to be later than seven (7) CDs from its issuance.
Notice and Execution of Award
What happens during contract signing?
Within 10 CDs from receipt of the winning bidder of the NoA, he shall post Performance Security and enter into contract with the PE, which shall, within the same period, enter into contract with the winning bidder provided all documentary requirements are complied with.
Notice and Execution of Award
When shall the HOPE act on the recommendation?
Within a period not exceeding 7 CD from the date of the BAC recommendation.

What are the conditions for the Award of Contract?
Submission of JVA if applicable
Posting of Performance Security
Signing of the Contract
Approval of Higher Authority
Notice and Execution of Award
Supporting documents for the approval of the Contract Award?
BAC Resolution
Abstract of Bids
Duly approved program of work or delivery schedule, and Cost Estimates
Document issued authorizing the PE to incur obligations for a specified amount
Other pertinent documents required by existing laws, rules, and/or PE concerned.
How long is the period for Post-Qualification?
Within three (3) CD from receipt of the bidder of the notice from the BAC that the bidder has the HRB.

What documentary requirements shall be submitted?
Latest Income and business tax returns
Certificate of PhilGEPS Registration
Other appropriate licenses and permits required by law and stated in the Bidding Documents
Consideration of the following:

qualifications of personnel and their compensation
no. of man-months
personnel to be assigned to the job
schedule of activities
taking note of over-qualified personnel to be commensurate with the compensation of personnel with the appropriate qualifications.
What points are open for negotiation?

Discussion and clarification of the following:
TOR and scope of Services
Methodology and work program
Services, facilities and data to be provided
Provisions of the ensuing contract
Financial Proposal (QBE only)

By: Charity Anne Osdon
Full transcript