What are the rules of procurement?
All procurement shall be done through competitive bidding (Sec.10).
Alternative methods shall be resorted to only in highly exceptional cases, after securing prior approval from the Head of Procuring Entity and justification based on the law and its IRR. (Secs.48.1, 48.2, IRR)
The specific rules of procurement are governed by these five principles (Sec.3):
- Transparency
- Competitiveness
- Streamline Procurement Process
- Accountability
- Public Monitoring
[*] Streamlined procurement process
In addition to the basic procurement rules:
- No procurement shall be undertaken unless in accordance with the approved Annual Procurement Plan (APP) including approved changes thereto. (Sec.7.2, IRR)
- The Approved Budget for the Contract shall be the ceiling of bid prices. However, there is no lower limit or floor bid price. (Sec.31.1, IRR)
- Reference to brand names shall not be allowed, except for items or parts that are compatible with the existing fleet or equipment of the same make and brand, and to maintain the performance, functionality and useful life of the equipment (Sec.18, IRR)
The basic evaluation rules:
- Eligibility requirements are absolute and exclusive.(NPM 163-2012)
- Bids must be complete, unless the bidding documents specifically allow partial bids. (Sec.32.2.1.a, IRR)
- Bids must be evaluated on equal footing (Sec.32.2.2, IRR)
- In case of a tie, non-discretionary/non-discriminatory tie-breaking methods shall be applied. (GPPB Circular 06-2005)
There are a lot of procurement rules, but these are the most used provisions.
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