Assessment No.
1. Define Procurement.
Procurement – refers to the acquisition of Goods, Consulting Services,
and the contracting for Infrastructure Projects by the Procuring Entity.
Procurement shall also include the lease of goods and real estate. It's a
broader process than simply purchasing, encompassing activities like
identifying needs, evaluating suppliers, negotiating contracts, and
ensuring compliance.
2. What is Competitive Bidding?
Competitive bidding is a procurement process where potential vendors or
contractors submit proposals or bids for a project or service, with the goal
of securing a contract with the most favorable terms. It's a common
practice in both the private and public sectors, aimed at ensuring fair
competition and securing the best value for the buyer.
Competitive Bidding – refers to a method of procurement which is open to
participation by any interested party and which consists of the following
processes: advertisement, pre-bid conference, eligibility screening of
prospective bidders, receipt and opening of bids, evaluation of bids, post
qualification, and award of contract, the specific requirements and
mechanics of which shall be defined in the IRR to be promulgated under
this Act.
3. What is the purpose of Procurement by Electronic Means?
Procurement by Electronic Means. Art.3 sec.8 – • To promote transparency
and efficiency, there shall be a single portal that shall serve as the
primary source of information on all government procurement.
The purpose of Procurement by Electronic Means (PEM) is to utilize
Information and Communications Technology (ICT) to improve
transparency, efficiency, and value for money in government
procurement. It aims to streamline processes, reduce costs, and enhance
competition among suppliers, ultimately leading to better outcomes for
government entities and taxpayers.
4. Identify the Alternative modes of procurement. Explain briefly.
[Link] Source Bidding - otherwise known as Selective Bidding - a
method of Procurement that involves direct invitation to bid by the
Procuring Entity from a set of pre- selected suppliers or consultants with
known experience and proven capability relative to the requirements of a
particular contract;
[Link] Contracting- otherwise known as Single Source Procurement - a
method of Procurement that does not require elaborate Bidding
Documents because the supplier is simply asked to submit a price
quotation or a pro-forma invoice together with the conditions of sale,
which offer may be accepted immediately or after some negotiations;
3. Repeat Order - involves a direct 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; subject to post-qualification process prescribed in the Bidding
Documents and provided all the following conditions are present:
[Link] - 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 qualification;
Shopping may be resorted to under any of the following instances:
a. Unforeseen Contingency-& b. Procurement of ordinary
5. Negotiated Procurement – (Section 53) a method of Procurement that may
be resorted under the extraordinary circumstances whereby the Procuring
Entity directly negotiates a contract with a technically, legally and financially
capable supplier, contractor or consultant.
5. What are the conditions that must be present in a Repeat Order?
a. Unit price - The unit price must be equal to or lower than that provided
in the original b. Repeat order-The repeat order does not result in splitting
of requisitions or purchase orders;
c. Special circumstances in special circumstances defined in the IRR, the
repeat order shall be availed of only within six (6) months from the date of
the Notice to Proceed arising from the original contract; and
d. Repeat order shall not exceed - The repeat order shall not exceed
twenty-five percent (25%) of the quantity of each item of the original
contract
6. What is the term and conditions for the use of alternative methods?
TERMS AND CONDITIONS FOR THE USE OF ALTERNATIVE METHODS •
Except for Limited Source Bidding under section 49 of this IRR,
submission of bid securities may be dispensed with. • Performance and
warranty security shall be submitted for contract acquired through the
alternative methods of procurement except for: o Shopping o
Negotiated Procurement: emergency cases, SVP, lease of real property
and UN agencies.
7. When can a Negotiated Procurement shall be allowed?
Instances allowed in Negotiated Procurement:
A. Two failed bidding - the PE directly negotiates a contract with a
technically, legally, and financially capable supplier, contractor or
consultant in any of the following cases.
• Any requirements, guidelines, documents, clarifications, and other
information shall be communicated by the PE to suppliers, etc. On an
equal basis.
• Completion of the negotiations_ the PE shall request all suppliers, etc
to submit, on a specified date, a best and final offer with respect to all
aspects of their proposals.
• Selection process _ select the successful offer on the basis of such
best and final offers. In all stages of the negotiations observers shall be
invited
B. Imminent danger to life-- danger to life or property during a state of
calamity, or when time is of the essence of 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 service and public utilities.
C. 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;
D. Subject contract is adjacent - Where the subject contract is adjacent
or contiguous to an on-going infrastructure project, as defined in the
IRR:
▪ That the original contract is the result of a Competitive Bidding;
▪ the subject contract to be negotiated has similar or related scopes of
work; it is within the contracting capacity of the contractor;
▪ the contractor uses the same prices or lower unit prices as in the
original contract less mobilization cost;
▪ the amount involved does not exceed the amount of the ongoing
project; and,
▪ That negotiations for the contractor has no negative slippage:
procurement are commenced before the expiry of the original contract.
E. Subject to the Guidelines - specified in the IRR, purchases of Goods
from another agency of the Government, such as the Procurement
Service of the DBM, which is tasked with a centralized procurement of
commonly used Goods for the government in accordance with Letters
of Instruction No. 755 and Executive Order No. 359, series of 1989.
In all instances, the Procuring Entity shall ensure that the most
advantageous price for the Government is obtained.
