CEP473
CONSTRUCTION METHODS AND
PROJECT MANAGEMENT
MODULE 2-BIDDING PROCESS AND REQUIREMENTS
By: Brian Jhay P. Guzman, CE, RMP, ME-I
Learning Outcomes
• To be familiar with the bidding process for procuring
goods and services.
Competitive Bidding
• Competitive or Public Bidding is a
method of procurement that is open to
any interested and
qualified party
Competitive Bidding Process
Step 1. Advertisement
Step 2. Issuance of Bidding Documents
Step 3. Pre-bid conference
Step 4. Receipt of eligibility documents and bids
Step 5. Evaluation of Bids
Step 6. Post-qualification
Step 7. Awarding of Contract
Step 8. Contract Signing and issuance of Notice to Proceed
Step 1 Advertise and Post an Invitation
to Apply for Eligibility and to Bid
• The IAEB serves as the notice to the public and all
interested parties of the procurement and
bidding opportunities of the Procuring Entity.
• It ensures transparency of the procurement
process, widest possible dissemination to increase
the number of prospective bidders, and intensify
competition for the procurement activity or
project.
Step 1 Advertise and Post an Invitation
to Apply for Eligibility and to Bid
• Intensified competition, in turn, will
ensure that the government, in general,
and the
Procuring Entity, in particular, will get the
best possible quality and cost for the
goods and
services sought to be procured.
PARTS OF THE IAEB
1. The name of the contract to be bid, and a brief description of the goods to be
procured;
2. A general statement on the criteria to be used by the Procuring Entity for:
a. The eligibility check;
b. The examination and evaluation of bids; and
c. Post-qualification
3. The date, time and place of the deadline for:
a. The submission and receipt of the eligibility requirements;
b. The pre-bid conference if any;
c. The submission and receipt of bids; and
d. The opening of bids;
4. The ABC;
5. The source of funding;
PARTS OF THE IAEB
6. The period of availability of the bidding documents, the place where the
bidding
documents may be secured and, where applicable, the price of the bidding
documents;
7. The contract duration or delivery schedule;
8. The name, address, telephone number, facsimile number, e-mail and website
addresses of the concerned Procuring Entity, as well as its designated contact
person;
9. The Reservation Clause, which is normally located at the bottom of the notice;
and
10. Such other necessary information deemed relevant by the Procuring Entity.
Step 2 Issue the Bidding Documents
• The bidding documents must be made
available to the prospective bidders
from the time the IAEB is advertised until
immediately before the deadline for
submission of bids.
Step 2 Issue the Bidding Documents
• The Procuring Entity must ensure that
prospective bidders are given ample
time to examine the bidding documents and
to prepare their respective bids. A maximum
period of thirty (30) calendar days from the
date of advertisement and/or first day of
posting of the IAEB up to opening of bids
Step 3 Call 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.
• The ground rules that will govern the procurement
are discussed during the conference. In
particular, the participants discuss the legal,
technical and financial components of the
contract to be bid.
Step 3 Call A Pre-Bid Conference
• This is also an opportunity for the prospective
bidders to request for
clarifications about the bidding documents.
• A pre-bid conference must be conducted at least
twelve (12) calendar days before the
deadline for the submission and receipt of bids.
Step 3 Call A Pre-Bid Conference
• The BAC must initiate discussions on
contentious issues, most especially if the
participating prospective bidders have no
ready questions. It is probable that there are
issues that may not be apparent in the
bidding documents but are known to the
representatives of the Procuring Entity.
Step 3 Call A Pre-Bid Conference
• If these issues are brought out and
openly discussed, prospective bidders will be
able to prepare responsive bids, thus
avoiding situations that may give rise to a
failure of bidding due to lack of bids
received or failure of bids to comply with all
the bid requirements. This would also help
prevent the birth contentious issues during
the bidding itself.
Step 4 Receive and Open the
Eligibility and Bid Envelopes
• It is a procedure to determine if a prospective bidder is
eligible to participate in the bidding at
hand. In determining a prospective bidder’s eligibility,
the BAC shall use non-discretionary
“pass/fail” criteria,
• this means that the
absence, incompleteness or insufficiency of a
document shall make a prospective bidder
ineligible to bid for the particular procurement.
Step 4 Receive and Open the
Eligibility and Bid Envelopes
• Minimum Eligibility requirements
• Class “A” Documents
• Legal Documents
• DTI business registration
• Mayor’s permit/Municipal license
• BIR Registration Certification
• Other documents proving the legitimacy of the interested
party
• Technical Documents
• Salient details about current ongoing contracts of the
bidders
Step 4 Receive and Open the
Eligibility and Bid Envelopes
• Minimum Eligibility requirements
• Financial Documents
• The prospective bidder’s audited financial statements,
stamped “received” by the BIR or its duly accredited and
authorized institutions, for the immediately preceding
calendar year.
• Class “B” Documents
• Letter authorizing the Head of the Procuring Entity or his
duly authorized representative/s to verify any or all of the
documents submitted for the eligibility check.
Step 4 Receive and Open the
Eligibility and Bid Envelopes
• A prospective bidder is eligible to bid for the
procurement of goods if it complies with the
eligibility requirements prescribed for the
competitive bidding, within the period stated
in the invitation to bid. The eligibility
requirements shall provide for fair and equal
access to all prospective bidders.
Step 4 Receive and Open the
Eligibility and Bid Envelopes
• A Bid refers to a signed offer or proposal to
undertake a contract submitted by a bidder
in
response to, and in consonance with, the
requirements stated in the bidding
documents.
Step 4 Receive and Open the
Eligibility and Bid Envelopes
• “Bid” is also equivalent to and may be used
interchangeably with “Proposal” and “Tender”. A
Bid has two components, the Technical Proposal or
the Technical Bid, and the Financial
Proposal or the Financial Bid. The Technical and
Financial Bids must each be contained in
separate sealed bid envelopes.
Step 4 Receive and Open the
Eligibility and Bid Envelopes
• Contents of a Technical Proposal
• The Bid Security as to form, amount and validity period
• Production/delivery schedule
• Manpower requirement
• Technical specifications
• Contents of a Financial Proposal
• The financial proposal submission sheet, which includes the bid prices
and the bill of quantities for procurement of goods, or scope of work
for procurement of services, and the applicable price schedules
Step 5 Evaluate the Bids
• The purpose of bid evaluation is to determine the
Lowest Calculated Bid (LCB). This is done by:
• Establishing the correct calculated prices of the bids,
through a detailed evaluation of the financial
component of the bids; and
• Ranking of the total bid prices as so calculated from the
lowest to the highest. The bid with the lowest price shall
be identified as the LCB.
Step 5 Evaluate the Bids
• Bid Evaluation
• The bid must be complete. Not addressing or providing all of the
required items in the bidding documents including, where
applicable, those requirements pertaining to the civil works
components of Goods procured, shall be considered non-responsive
and, thus, automatically disqualified.
• Minor arithmetical corrections to consider computational errors,
omissions and discounts, if allowed in the bidding documents, to
enable proper comparison of all eligible bids.
• In the evaluation of bids, all bids shall be evaluated on an equal
footing to ensure fair and competitive bid evaluation.
Step 6 Post-qualify
• Post-qualification is the process of verifying, validating
and ascertaining all the statements
made and documents submitted by the bidder with
the LCB, which includes ascertaining the
said bidder’s compliance with the legal, financial and
technical requirements of the bid.
• Legal, Technical and Financial Requirements will be
verified.
Step 6 Post-qualify
• If its eligibility documents had been validated and
verified, and its compliance with the legal, financial,
and technical requirements of the bid had been
ascertained, the bidder must be declared the bidder
with the “Lowest Calculated Responsive Bid” (LCRB).
Step 7 Award the Contract
• The contract shall be awarded to the bidder with the
LOWEST CALCULATED RESPONSIVE BID at its submitted
bid price or its calculated bid price, whichever is
lower.
• The Head of Procuring Entity or his duly authorized
representative should approve or disapprove the
recommendation of award within seven (7) calendar
days from the date of determination and declaration
by the BAC of the LCRB.
Step 7 Award the Contract
• If the bidder refuses to accept the award within the bid
validity period, the BAC shall forfeit the bid security of
the bidder and shall initiate the blacklisting
proceedings in
accordance with the Uniform Guidelines for
Blacklisting
Step 7 Award the Contract
• Parts of the Contract
• The Contract Agreement;
• Conditions of the contract (General and Specific);
• Technical Specifications of Goods or Scope of Work for services;
• IAEB
• Bidding documents
• Addenda and/or Supplemental/Bid Bulletins, if any;
• Bid form including all the documents/statements contained in the
winning bidder’s two bidding envelopes, as annexes
Step 7 Award the Contract
• Parts of the Contract
• Eligibility requirements, documents and/or statements;
• Performance Security
• Credit Line issued by a licensed bank in accordance with the
provisions of the IRR-A, if applicable;
• Notice of Award of Contract and winning
bidder’s “Conforme” thereto; and
• Other contract documents that may be required by existing laws
and/or the Procuring Entity concerned.
Step 8 Have the Contract Signed and
Approved and Issue the Notice to
Proceed
• The winning bidder and the Procuring Entity must enter
into a contract immediately after the
former has submitted the performance security and all
other documentary requirements
within the period specified in the IRR-A. The parties
must sign the contract within ten (10)
calendar days from receipt by the winning bidder of
the Notice of Award.
