RA 12009 & 9184 – Quick Review Notes: Procurement Modes & Key Rules

Modes of Procurement

• Default: Competitive Bidding (CB)
• Existing alternative modes (RA 9184 + 12009):
– Limited Source Bidding (LSB)
– Direct Contracting (DC)
– Repeat Order (RO)
– Small Value Procurement (SVP)
– Negotiated Procurement (NP) – 11 sub-categories
– Procurement of Common-Use Supplies & Equipment (CSE) via PS-DBM
• NEW modes under RA 12009:
– Competitive Dialogue (CD)
– Unsolicited Offer with Bid Matching (UO-BM)
– Direct Acquisition (DA)
– Direct Sales (DS)
– Direct Procurement for Science, Technology & Innovation (STI)

Applicability (✓ = allowed)

• CB: Goods ✓ Infra ✓ Consulting ✓
• CD, UO-BM: Goods ✓ Infra ✓ Consulting ✓
• LSB, DC, RO, SVP, DA, DS: Goods ✓ Infra × Consulting ×
• NP sub-modes – check matrix (most allow all three except: Highly Technical Consultants = Consulting only; POL/Subscriptions = Goods only)
• CSE: Goods only, through PS-DBM unless exception applies

Competitive Bidding – Core Rules

• BAC may guide bidders; may delegate non-bid modes to end-users
• Required Bidding Documents list (ABC, ITB/REI, specs/TOR, eligibility, plans, price forms, security forms, contract terms, env. specs)
• Publication: minimum 7 C.D. (CB, CD, UO-BM); 3 C.D. for LSB, 2 Failed, SVP >200{,}000, NGO; others exempt
• Pre-procurement conference mandatory when ABC exceeds:
– Goods 5{,}000{,}000; Infra 10{,}000{,}000; Consulting 2{,}000{,}000
• Pre-bid conference: at least once for projects ≥ 3{,}000{,}000
• Award criteria: LCRB, MEARB, MARB (Goods/Infra), HRRB (Consulting)
• Two-envelope system; late bids rejected; modification/withdrawal allowed before deadline
• Bid security: Bid Securing Declaration or 2 % (cash/bank) / 5 % (surety/LC) of ABC; validity ≤ 120 days
• NFCC formula: \text{NFCC} = [ (\text{Current Assets} - \text{Current Liabilities}) \times (15) ] - \text{value of outstanding works} ≥ ABC
• SLCC: completed similar contract(s) within 10 yrs ≥ 50\% of ABC
• Joint Venture Filipino equity: Goods ≥ 60\%; Infra ≥ 60\% (may be 25\% if specialized); Consulting – regulated professions must be Filipino unless HOPE certifies lack of capability
• Process timeline (max): Goods 45 C.D.; Infra 50/65; Consulting 75

Limited Source Bidding (LSB)

• Direct invitation to pre-selected capable sources
• Conditions: highly-specialized/complex Goods or Consulting; major plant parts; NEW – specialized Infra affecting national security
• Follow CB procedures but posting only 3 C.D.; reduced internal timelines allowed

Direct Contracting (DC)

• For proprietary goods, critical components from specific source, or sold by exclusive dealer with no sub-dealers & no substitute
• No elaborate docs; supplier submits price quotation/pro-forma invoice; simple negotiation

Repeat Order (RO)

• Replenish Goods from previous winning bidder
• Requirements: original contract via competitive method; avail within 6 months of NTP; price ≤ original & market; qty ≤ 25\% per item

Small Value Procurement (SVP)

• Goods/Infra/Consulting up to ABC 2{,}000{,}000 (NGAs/GOCCs/SUCs); LGU ceilings vary by class
• Post RFQ for 3 C.D. (unless ≤ 200{,}000); get ≥ 1 quotation; proceed if responsive & within ABC

Negotiated Procurement – Key Triggers

• Two Failed Biddings – after 2 unsuccessful competitive attempts
• Emergency Cases – life/property at risk, calamity, vital services restoration
• Take-over of Contracts – rescinded/terminated contract that must be continued
• Adjacent/Contiguous – additional works/services to ongoing contract (same contractor, ≤ original amount, no slippage, etc.)
• Agency-to-Agency – purchase from another government entity with mandate & capacity (excludes AFP engineers, gov’t printers, PS-DBM CSE)
• Scientific/Artistic/Exclusive Technology & Media – unique works, journals, medical devices (certified by DOH)
• Highly Technical Consultants – individual experts where trust/confidence essential (one-year, renewable)
• Defense Cooperation & Inventory Items – DND procurements under defense agreements or inventory compatibility
• Lease of Real Property & Venue – prefer gov’t-owned; justify if private
• NGO Participation – only when law/ordinance earmarks funds for NGO
• Community Participation – direct purchase from farmers/fisherfolk or community execution of simple infra; requires capacity building & LGU approval
• UN Agencies / IO / IFI – limited suppliers (e.g., vaccines, advanced tech, critical health goods)
• Direct Retail Purchase of POL / Charging Devices / Online Subscriptions – immediate use; POL at pump price, subscriptions ≤ 1 M (up to 5 M with HOPE approval)

Procurement of CSE

• All NGAs, GOCCs, GFIs, SUCs, LGUs must buy CSE from PS-DBM
• May buy elsewhere if: zero or insufficient stock; spec non-conformity; economic impracticality
• PS-DBM sets/updates CSE list, specs & may procure via any mode

New Modes under RA 12009

• Competitive Dialogue: two-stage; allowed when specs cannot be precisely defined, innovative design, or prior negotiation needed
• Unsolicited Offer with Bid Matching: accepts innovative proposals, then invites comparative bids; first complete offer gets priority/conferral rights
• Direct Acquisition: non-CSE Goods/Services ≤ 200{,}000; buy off-the-shelf/online; supplier must be PhilGEPS-registered; no canvass required; may pay via petty cash, reimbursement, ADA, check
• Direct Sales: purchase same non-CSE from supplier that satisfactorily delivered to another agency via competitive bid within past 6 months; price ≤ original; supplier must accept DSR
• Direct Procurement for STI: buy R&D inputs or commissioned goods developed for PE; by default, intellectual property belongs to the Procuring Entity unless otherwise agreed

General Compliance Reminders

• Splitting of contracts to avoid thresholds is prohibited
• BAC may delegate non-bid modes to end-user / implementing unit
• Ensure posting on PhilGEPS, agency website & conspicuous place as required
• All figures (ABC, % limits, timelines) strictly observed to avoid audit issues

Common Exam Tips

• Default mode is Competitive Bidding; use alternatives only when specific legal conditions exist and are documented
• Always check: eligibility (PhilGEPS Platinum, SLCC, NFCC), posting period, thresholds, and approval authority (HOPE/BAC)
• Repeat Order & Direct Sales both tied to previous competitive contracts but differ in supplier & timing rules
• DA (≤200k) vs SVP (≤2M): DA needs no canvass; SVP needs at least one quote & 3-day posting
• New RA 12009 adds flexibility but still demands transparency (e.g., publication, bid security for competitive modes)