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Philippine Bidding Documents(As Harmonized with Asian Development Bank, Japan Bank for

International Cooperation, and World Bank)

Procurement ofGOODS

The Government of the Republic of the

Philippines

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Third Edition

Second Edition

September 2009

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May 2005

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Preface

ThiseseeseThis Philippine Bidding Documents (PBDs) for the procurement of

Goods through Competitive Bidding hasveves been prepared by the Government of the

Philippines (GOP) for use by all branches, agencies, departments, bureaus, offices, or

instrumentalities of the government, including government-owned and/or -controlled

corporations (GOCCs), government financial institutions (GFIs), state universities and

colleges (SUCs), and local government units (LGUs). The procedures and practices

presented in this document have been developed through broad experience, and are for

mandatory1 use in projects that are financed in whole or in part by the GOP, the Asian

Development Bank (ADB), the Japan Bank for International Cooperation (JBIC), and theWorld Bank (WB) or any foreign government/foreign or international financing institution in

accordance with the provisions of the Implementing Rules and Regulations (IRR) of Republic

Act (RA) 9184. (R.A. 9184).latest editions of:

Thise Bidding Documents shall clearly and adequately define, among others: (a) the

objectives, scope, and expected outputs and/or results of the proposed contract; (b) the

minimum eligibility requirements of bidders, such as track record to be determined by the

Head of the Procuring Entity; (c) the expected contract duration, the estimated quantity in the

case of procurement of goods, delivery schedule and/or time frame; and (d) the obligations,

duties, and/or functions of the winning bidder.

1. Revised Implementing Rules and Regulations Part A (Revised IRR-A) of

Republic Act 9184 (R.A. 9184)2. Guidelines for the Procurement of GOODS by the Asian Development Bank

and its Borrowers

3. Guidelines for Procurement under JBIC ODA Loans4. Guidelines: Procurement under IBRD Loans and IDA Credits

In order to simplify the preparation of Bidding Documents for each procurement, the

PBDs groups the provisions that are intended to be used unchanged in Section II. Instructionsto Bidders (ITB), and in Section IV. General Conditions of Contract (GCC). Data and

provisions specific to each procurement and contract should be included in Section III. Bid

Data Sheet (BDS); Section V. Special Conditions of Contract (SCC); Section VI. Schedule of

Requirements; and Section VII. Technical Specifications. The forms to be used are provided

in Section VIII. SampleBidding Forms.

1 Except in the case of International Competitive Bidding (ICB) funded by either ADB, JBIC, or WB in which

case the use of the respective Bidding Documents for ICB is mandatory. Unless the Treaty or International orExecutive Agreement expressly provides use of foreign government/foreign or international financing

institution procurement procedures and guidelines.

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Care should be taken to check the relevance of the provisions of the PBDs

against the requirements of the specific Goods to be procured. In addition, each section is

prepared with notes intended only as information for the Procuring Entity or the person

drafting the Bidding Documents. They shall notbe included in the final documents, exceptfor the notes introducing Section VIII. SampleBidding Forms, where the information is

useful for the Bidder. The following general directions should be observed when using thedocuments:

(a) All the documents listed in the Table of Contents are normally required for the

procurement ofConsulting ServicesGoods. However, they should be adapted

as necessary to the circumstances of the particular Project.

(b) Specific details, such as the name of the Procuring Entity and address for

bid submission, should be furnished in the ITB, BDS, and SCC. The final

documents should contain neither blank spaces nor options.

(c) This Preface and the footnotes or notes in italics included in the Invitations

(Invitation to Apply for Eligibility and to Bid and Letter of Invitation to Bid),

BDS, SCC, Schedule of Requirements, and Specifications are not part of the

text of the final document, although they contain instructions that the

Procuring Entity should strictly follow. The Bidding Documents should

contain no footnotes except Section VIII. SampleBidding Forms since these

provide important guidance to Bidders.

(d) The cover should be modified as required to identify the Bidding Documents

as to the names of the Project, Contract, and Procuring Entity, in addition to

date of issue.

(e) If modifications must be made to bidding procedures, they can be presented in

the BDS. Modifications for specific Project or Contract details should be

provided in the SCCC as amendments to the Conditions of Contract. For easy

completion, whenever reference has to be made to specific clauses in the EDS,

BDS, or SCC these terms shall be printed in bold type face on Section II.Eligibility Documents, Section I. Instructions Tto Bidders, and Section III.

GCCGeneral Conditions of Contract, respectively.

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TABLE OF CONTENTS

SECTION I. INVITATIONTO APPLYFOR ELIGIBILITYANDTO BID...10SECTION II. INSTRUCTIONSTO BIDDERS............................17

SECTION III. BID DATA SHEET.....................................63

SECTION IV. GENERAL CONDITIONSOF CONTRACT................89

SECTION V. SPECIAL CONDITIONSOF CONTRACT................114

SECTION VI. SCHEDULEOF REQUIREMENTS......................129

SECTION VII. TECHNICAL SPECIFICATIONS.......................131

SECTION VIII. SAMPLEBIDDING FORMS..........................135

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Section I. Invitation toApply for Eligibility

and toBid

Notes on the Invitation to Apply for Eligibility and to Bid

The Invitation to Apply for Eligibility and to Bid (IAEB)provides information that enables

potential Bidders to decide whether to participate in the procurement at hand. The IAEB

Invitation to Bidshall be:

(a) Advertised at least once twice within a maximum period of fourteen (14) calendar

days, with a minimum period of six (6) calendar days in between publications, in anewspaper of general nationwide circulation which has been regularly published for

at least two (2) years before the date of issue of the advertisement, subject to

Sections 21.2.2 and 54.2 of the IRR-A ofR.A.RA 9184;

(b) Posted continuously in the Philippine Government Electronic Procurement System

(PhilGEPS) website, and the website of the Procuring Entity concerned, if

available, and the website prescribed by the foreign government/foreign or

international financing institution, if applicable,the website of the PROCURING

ENTITYS service provider, if any, and the Philippine Government Electronic

Procurement System (PhilGEPSG-EPS) website fora minimum period ofseven (7)

during the maximum period of fourteen (14) calendar days starting on the date ofadvertisement; and

Posted at any conspicuous place reserved for this purpose in the premises of the

Procuring Entity concerned fora minimum period ofseven (7) calendar days, as certified

by the head of the Bids and Awards Committee (BAC) Secretariat of the Procuring Entity

concerned. from the date of the first newspaper advertisement to the date set for the

submission of Bids.

Apart from the essential items listed in the Bidding Documents, the Invitation to AEBid

should also indicate the following:

(a) The date of availability of the Bidding Documents, which shall be issued within

thirty (30) calendar days from the time the Invitation to Bid is first

advertised/posted until the deadline for the submission and receipt of bids.last day

of the period of advertising and/or posting of the IAEB; In the case of the ADB,

JBIC, and WB the Bidding Documents must be available for purchase for a

minimum of thirty (30) days

(b) The place where the Bidding Documents may be purchased or the website

where it may be downloaded.;

(c) The deadline for the submission and receipt of bids from the last day of the

period for advertising and/orposting of the IAEBInvitation to Bid; and

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(d) Any important bid evaluation criteria ( for examplee.g., the application of a

margin of preference in bid evaluation) or qualification requirement (for example, a

requirement for a minimum level of experience in manufacturing a similar type of

GOODS for which the IAEB is issued).

The Invitation to AEBid should be incorporated into the Bidding Documents. The

information contained in the Invitation to AEBid must conform to the Bidding Documents

and in particular to the relevant information in the BDS.

In the case of ADB, JBIC, or WB funding, sent to all who have expressed an interest in the

supply of GOODS as a result of any Procurement Notice issued by the respective Funding

Source.

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[Letterhead of the Procuring Entity]

INVITATIONTOAPPLYFOR ELIGIBILITYANDTOBIDFOR

[Insert name of Project]

[Insert Brief Description of Goods]

[Loan/Credit/Grant No.]

1. Select one of the two following paragraphs,deletingand delete the other depending on

the Funding Source:

a) If the Funding Source is wholly GOP:

The [insert name of Procuring Entity], through the [insert source of funding andyear]2 intends to apply the sum of [insert the approved budget for the contract]being the Approved Budget for the Contract (ABC) to payments under the contract

for [insert name/no. of contract]. Unless otherwise provided in the Bidding

Documents, BBids received in excess of the ABC shall be automatically rejected at

bid opening.

Or

b) If the Funding Source is a foreign government/foreign or international

financing institutionADB, JBIC, or WB:

The Government of the Philippines (GOP) [has received/has applied for/intends toapply for] a [Loan/Credit/Grant] from the [Asian Development Bank/ Japan Bank

for International Cooperation/ World Bankstate theforeign government/foreign orinternational financing institution, (e.g. Asian Development Bank, Japan

International Cooperative Agency, orthe World Bank)] toward the cost of[insert

name of project], and it intends to apply part of the proceeds of this[Loan/Credit/Grant] to payments under the contract for [insert name/no. of

contract].

2. The [insert name of Procuring Entity] now invites bids from eligible Bidders for[insertbrief description of Goods to be procured].3 Delivery of the Goods is required by [insert

2 In the case of National Government Agencies, the General Appropriations Act and/or continuing

appropriations; in the case of Government Owned or Controlled Corporations (GOCCs), Government Financial

Institutions (GFIs), and State Universities and Colleges (SUCs), the Corporate Budget for the contract approved

by the governing Boards; in the case of Local Government Units (LGUs), the Budget for the contract approved

by the respective Sanggunian. (Section 5(a), R.A. 9184)3 A brief description of the type(s) of GOODS should be provided, including quantities, location of project, and

other information necessary to enable potential bidders to decide whether or not to respond to the invitation.

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the required delivery date or expected contract duration]. Bidders should have completed,

within a period of[insertnumber of yearsrelevant period] from the date of submission andreceipt of bids, a contract [or contracts] similar to the contract to be bidProject. The

description of an eligible bidder is contained in the Bidding Documents, particularly, in

Section II. of the Bidding Documents, Instructions to Bidders. The description of an

eligible Bidder is contained in Section II of the Bidding Documents, ITB.

3. Select one of the followingfour two paragraphs, deleting and delete the other three

depending on the Funding Source:

a) If the Funding Source is whollyGOP:

Bidding will be conducted through open competitive bidding procedures using a

non-discretionary pass/fail criteria criterion as specified in the Revised

Implementing Rules and Regulations Part A (Revised IRR-A) of Republic Act

(RA) 9184 (R.A. 9184), otherwise known as the Government ProcurementReform Act,.

In addition, Sselect one of the two (2)following paragraphs deletingand delete the

other depending on the Funding Sourceexistence of conditions under Section

23.5.1.2 of the IRR of RA 9184:

(i) Select this paragraph if conditions (a), (c), and (d) under Section 23.5.1.2 of the

IRR of RA 9184 do not exist:Bidding is and is restricted to Filipino citizens/sole

proprietorships, organizations with at least sixty percent (60%) interest or

outstanding capital stock belonging to citizens of the Philippines, and to citizens or

organizations of a country the laws or regulations of which grant similar rights or

privileges to Filipino citizens, pursuant to Republic ActRA 5183 (R.A. 5183) and

subject to Commonwealth Act 138 (C.A. 138). Only Bids from Bidders who pass

the eligibility check will be opened. The process for the eligibility check is

described in Section II of the Bidding Documents, ITB. The bidder with the Lowest

Calculated Bid (LCB) shall advance to the post-qualification stage in order to

finally determine responsiveness of the bid to technical and financial requirements

of the project. The contract shall then be awarded to the Lowest Calculated and

Responsive Bidder (LCRB) who was determined as such during the post-

qualification procedure.

Or, if any of the conditions under Section 23.5.1.2 exists:

(ii)Select this paragraph ifeitherconditionns (a), (c), or (d) ofunderSection 23.5.1.2

of the IRR of RA 9184 exists:Bidding is open to all interested bidders, whether

local or foreign, subject to the conditions for eligibility provided in the

Implementing Rules and Regulations of Republic Act IRR of RA 9184.

b)

c) If the Funding Source is a foreign government/foreign or international

financing institution:

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Bidding will be conducted in accordance with relevant procedures for open

competitive bidding as specified in the Implementing Rules and Regulations

(IRR) of Republic Act (RA) 9184 (R.A. 9184), otherwise known as the

Government Procurement Reform Act, , with some amendments, as stated in

these Bidding Documents to the extent it is consistent with the procurement

procedures of the [state the foreign government/foreign or international financinginstitution (e.g., Asian Development Bank, Japan International Cooperation

Agency, or World Bank)]and is open to all Bidders from eligible source countries as

defined in the applicable guidelines of the [state theforeign government/foreign or

international financing institution concerned (e.g. Asian Development Bank, Japan

International Cooperation Agency, or World Bank)].Or

If the Funding Source is the ADB:

Bidding will be conducted in accordance with relevant procedures for open

competitive bidding as specified in the Implementing Rules and Regulations

(IRR) of Republic Act 9184 (R.A. 9184), otherwise known as the GovernmentProcurement Reform Act, to the extent consistent with Asian Development

Banks procurement procedures as defined in Guidelines for Procurement Under

Asian Development Bank Loans, and is open to all Bidders from eligible source

countries.

Or

If the Funding Source is the JBIC:

Bidding will be conducted through national competitive bidding procedures

specified in the Japan Bank for International Cooperations local competitive

biddingprocedures and is open to all Bidders from eligible source countries as

defined inGuidelines for Procurement under JBIC ODA LoansOr

If the Funding Source is WB:

The procurement will be conducted through the government open competitive

procedures specified under the Implementing Rules and Regulations

Part A (Revised IRR-A) of the Republic Act No. 9184 (R.A. 9184), otherwise knownas the Government Procurement Reform Act, with some amendments as stated in

these Bidding Documents. The ABC is [insert amount].

4. Interested bidders may obtain further information from [insert name of the Procuring

Entity] and inspect the Bidding Documents at the address given below from during [insertoffice hours].

5. Select one of the following two paragraphs, and delete the other depending on the

Funding Source:

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Bids must be delivered to the address below on or before bid opening shall be on [insertdate and time] at [insert address for bid openingsubmission and receipt of bids]. Bids will

be opened in the presence of the Bbidders representatives who choose to attend at the

address below. Late bids shall not be accepted.

11. [Insert such other necessary information deemed relevant by the PROCURING

ENTITY]

12. The [insert name of the Procuring Entity] reserves the right to accept or reject any bid,

to annul the bidding process, and to reject all bids at any time prior to contract award,

without thereby incurring any liability to the affected bidder or bidders.

13. For further information, please refer to:

[Insert name of officer][Insert name of office]

[Insert name of officer]

[Insert postal address] and/or[Insert street address] [Insert telephone number, indicate city code]

[Insert contacts email address] [Insert facsimile number]

[Insert website address, if applicable]

_________________________________

[Insert Name andSignature of the BACChairpersonman or the Authorized

Representative of the BAC Chairpersonman]

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Section II. Instructions to Bidders

Notes on the Instructions to Bidders

This section of the Bidding Documents provides the information necessary for Bidders to

prepare responsive bids, in accordance with the requirements of the Procuring Entity. It

also provides information on the eligibility check,bid submission, opening, evaluation, and

award of contract.

Section II contains provisions that are to be used unchanged. Section III consists of

provisions that supplement, amend, or specify, in detail, information or requirements

included in Section II which are specific to each procurement.

Matters governing performance of the BidderSupplier, payments, or those affecting the

risks, rights, and obligations of the parties under the contract are not normally included in

this section, but rather underSection IV. General Conditions of Contract, and/orSection V.

Special Conditions of Contract. If duplication of a subject is inevitable in the other

sections of the document prepared by the Procuring Entity, care must be exercised to avoid

contradictions between clauses dealing with the same matter.

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TABLE OF CONTENTS

SECTION I. INVITATIONTO APPLYFOR ELIGIBILITYANDTO BID...10

SECTION II. INSTRUCTIONSTO BIDDERS............................17A. GENERAL.........................................................................................................25

.1.1. Scope of Bid..............................................................................................................25

.1.4. Source of Funds.........................................................................................................25

B. THE PROCURING ENTITYHASABUDGETORHASAPPLIEDFORORRECEIVEDFUNDS

FROMTHE FUNDING SOURCENAMEDINTHE BDS, ANDINTHEAMOUNTINDICATEDIN

THE BDSBDS. ITINTENDSTOAPPLYPARTOFTHEFUNDSRECEIVEDFORTHE

PROJECT, ASDEFINEDINTHE BDSBDS, TOCOVERELIGIBLEPAYMENTSUNDERTHE

CONTRACT. ......................................................................................................25

.1.7. Corrupt, Fraudulent, Collusive, and Coercive Practices...........................................25

.1.11. Conflict of Interest..................................................................................................26

.1.15. Eligible Bidders.......................................................................................................27

.1.24. Bidders Responsibilities ......................................................................................30

.1.32. .................................................................................................................................33

.1.33. Origin of GoodsOODS and Services......................................................................33

.1.35. Subcontracts............................................................................................................33

C. CONTENTSOF BIDDING DOCUMENTS...................................................................33

.1.36. Pre-Bid Conference.................................................................................................33

.1.40. Clarification and Amendment of Bidding Documents............................................33

D. C. PREPARATIONOF BIDS.................................................................................34

.1.46. Language of Bid......................................................................................................34

.1.47. Eligibility Check.....................................................................................................34

.1.48. Unless otherwise indicated in the BDS, prior to Bid opening the Bidder must first

pass an eligibility check. Only after a Bidder has satisfactorily passed this eligibility

check will its Bid be included in the Bid opening. A Bidder shall include its

eligibility documents in a separate envelope marked Eligibility Documents and

shall be submitted together with the Technical and Financial Bid envelope on or

before the deadline specified in the BDS provision for ITB Clause E. At the Bid

opening, the PROCURING ENTITY shall first open the envelope markedEligibility Documents. The eligibility documents are described in the following

Clause.......................................................................................................................34

.1.49. Eligibility Documents.............................................................................................35

.1.50. Class A Documents ..........................................................................................35

Legal Documents..............................................................................................................35

.1.51. Department of Trade and Industry (DTI) business name registration or Securities

and Exchange Commission (SEC) registration certificate, whichever may be

appropriate under existing laws of the Philippines;..................................................35

.1.52. Valid and current Mayors permit/municipal license;.............................................35

.1.53. Taxpayers Identification Number;.........................................................................35

.1.54. Statement of the prospective Bidder that it is not blacklisted or barred from

bidding by the Government or any of its agencies, offices, corporations or LGUs,

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.1.73. The PROCURING ENTITYs eligibility check will be limited to establishing the

completeness of each prospective Bidders eligibility requirement by determining

the presence or absence of the documents required against a checklist of

requirements using non-discretionary pass/fail criteria. The eligibility check will

not examine the substance of the contents of the documents. If a prospective Bidder

submits the specific eligibility document required, it shall be rated as passed forthat particular requirement. However, failure to submit a requirement or an

incomplete or patently insufficient submission shall be considered failed for the

particular eligibility requirement concerned.............................................................37

.1.74. Documents Comprising the Bid, : Eligibility and Technical ComponentsProposals

..................................................................................................................................37

.1.3. Documents Comprising the Bid:, Financial ProposalComponent............................39

.1.9. Bid Submission: Technical and Financial Proposals................................................40

.1.10. The Bidder shall submit their Bids through their authorized managing officer or

their authorized representative using the appropriate Bid Form provided in Section

VIII. SampleBidding Forms on or before the deadline specified in the ITB Clause

E, and in two (2) separate sealed envelopes, the first envelope containing thetechnical component of the Bid and the second envelope containing the financial

component of the Bid addressed to the BAC of the Procuring Entity. These forms

must be completed without any alterations to their format, and no substitute form

shall be accepted. All blank spaces shall be filled in with the information requested.

..................................................................................................................................40

.1.11. The Bidder shall submit, as part of the Financial Proposal, the Price Schedules for

Goods and Related Services, according to their origin as appropriate, using the

forms provided in Section VIII. SampleBidding Forms...........................................40

.1.12. The Bidder shall bear all costs associated with the preparation and submission of

its bid, and the Procuring Entity shall not be responsible or liable for those costs,

regardless of the conduct or outcome of the bidding process...................................41

.1.13. Alternative Bids......................................................................................................41

.1.14. Bid Prices................................................................................................................41

.1.24. Bid Currencies.........................................................................................................42

.1.29. Documents Establishing the GOODS Conformity to the Bidding Documents.....43

.1.30. The documentary evidence of conformity of the Goods and services to the Bidding

Documents may be in the form of literature, drawings, and data, and shall consist

of:..............................................................................................................................43

.1.31. a detailed description of the essential technical and performance characteristics of

the Goods;.................................................................................................................43

.1.32. a list giving full particulars, including available sources and current prices of spareparts, special tools, etc., necessary for the proper and continuous functioning of the

Goods for a period to be specified in the BDS, following commencement of the use

of the GOODS by the Procuring Entity; and............................................................43

.1.33. an item-by-item commentary on the Procuring Entitys Technical Specifications

demonstrating substantial responsiveness of the GOODS and services to those

specifications, or a statement of deviations and exceptions to the provisions of

Section VII. Technical Specifications......................................................................43

.1.34. Standards for workmanship, process, material, and equipment, are intended to be

descriptive only and not restrictive. The Bidder may offer other standards of

quality, brand names, and/or catalogue numbers, provided that it demonstrates, to

the Procuring Entitys satisfaction, that the substitutions are equivalent or asspecified in the technical specifications and/ or Scheduled performance................43

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.1.35. Bid Validity.............................................................................................................44

.1.38. Bid Security.............................................................................................................44

.1.53. Format and Signing of Bid......................................................................................46

.1.59. Sealing and Marking of Bids...................................................................................46

E. SUBMISSION

AND

OPENING

OF

BIDS

.....................................................................47.1.65. Format and Signing of Bids....................................................................................47

.1.66. The Bidder shall prepare an original of the Eligibility Documents, Technical

Proposal, Financial Proposal as described in ITB Clauses D, D, and D, and clearly

mark each ORIGINAL ELIGIBILITY DOCUMENTS, ORIGINAL -

TECHNICAL PROPOSAL, and ORIGINAL FINANCIAL PROPOSAL,

respectively. In addition, the Bidder shall submit copies of the Eligibility

Documents, Technical Proposal, and Financial Proposal, and clearly mark them

COPY NO. ___ - ELIGIBILITY DOCUMENTS, COPY NO. ___ -

TECHNICAL PROPOSAL, and COPY NO. ___ FINANCIAL PROPOSAL.

In the event of any discrepancy between the original and the copies, the original

shall prevail...............................................................................................................47.1.67. The original and the number of copies of the Bid as indicated in the BDS shall be

typed or written in indelible ink and shall be signed by the Bidder or a person or

persons duly authorized to bind the Bidder to the Contract. All pages of the Bid,

except for unamended printed literature, shall be initialed by the person or persons

signing the Bid..........................................................................................................48

.1.68. Any interlineations, erasures, or overwriting shall be valid only if they are signed

or initialed by the person signing the Bid. ...............................................................48

.1.69. Sealing and Marking of Bids...................................................................................48

.1.70. Unless otherwise indicated in the BDS, Bidders shall enclose their original

eligibility documents described in ITB Clause D sealed in a separate envelope

marked ORIGINAL - ELIGIBILITY DOCUMENTS, the original of their

Technical Proposal in one sealed envelope marked ORIGINAL - TECHNICAL

PROPOSAL, and the original of their Financial Proposal in another sealed

envelope marked ORIGINAL - FINANCIAL PROPOSAL, sealing them all in an

outer envelope marked ORIGINAL BID. Each copy of the Eligibility

Documents, Technical Proposal, and Financial Proposal shall be similarly sealed

duly marking the inner envelopes as COPY NO. ___ - ELIGIBILITY

DOCUMENTS, COPY NO. ___ - TECHNICAL PROPOSAL, and COPY NO.

___ FINANCIAL PROPOSAL and the outer envelope as COPY NO. ___,

respectively. These envelopes containing the original and the copies shall then be

enclosed in one single envelope. .............................................................................48.1.71. All envelopes shall:.................................................................................................48

.1.72. contain the name of the contract to be bid in capital letters;...................................48

.1.73. bear the name and address of the Bidder in capital letters;.....................................49

.1.74. be addressed to the Procuring Entitys BAC in accordance with ITB Clause A;.. .49

.1.75. bear the specific identification of this bidding process indicated in the ITB Clause

A; and.......................................................................................................................49

.1.76. bear a warning DO NOT OPEN BEFORE the date and time for the opening of

Bids, in accordance with ITB Clause E....................................................................49

.1.77. If all envelopes are not sealed and marked as required, the Procuring Entity will

assume no responsibility for the misplacement or premature opening of the Bid.. .49

.1.78. Deadline for Submission of Bids............................................................................49

.1.79. Late Bids.................................................................................................................49

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.1.80. Modification and Withdrawal of Bids.....................................................................49

.1.86. Opening and Preliminary Examination of Bids .....................................................50

F. EVALUATIONAND COMPARISONOF BIDS..............................................................53

.1.108. Process to be Confidential ....................................................................................53

.1.114. Clarification of Bids .............................................................................................53

G. CONVERSIONTOA SINGLE CURRENCY................................................................53

.1.116. Domestic Preference.............................................................................................53

.1.121. Detailed Evaluation and Comparison of Bids.......................................................54

.1.130. Post-Qualification.................................................................................................56

.1.2. Procuring Entitys Right to Reject Bids, Declare a Failure of Bidding, and not to

Award the ContractReservation Clause....................................................................57

I. AWARDOF CONTRACT........................................................................................58

.1.6. Contract Award.........................................................................................................58

.1.15. Signing of the Contract...........................................................................................59

.1.20. Performance Security..............................................................................................60

.1.5. Notice to Proceed......................................................................................................61

SECTION III. BID DATA SHEET.....................................63

SECTION IV. GENERAL CONDITIONSOF CONTRACT................89

.1 Definitions.....................................................................................................................99

.1.2. Corrupt, Fraudulent, Collusive, and Coercive Practices.........................................100

.1.5. Inspection and Audit by the Funding Source..........................................................100

.1.6. Governing Law and Language................................................................................101

.1.9. Notices.....................................................................................................................101

.1.12. Scope of Contract..................................................................................................101

.1.15. Sub-Ccontracting...................................................................................................101

.1.22. Procuring Entitys Responsibilities.......................................................................102

.1.25. Prices.....................................................................................................................102

.1.26. Payment.................................................................................................................102

.1.31. Advance Payment..................................................................................................103

.1.36. Taxes and Duties...................................................................................................103

.1.39. Performance Security............................................................................................104

.1.54. Use of Contract Documents and Information.......................................................105

.1.57. Standards...............................................................................................................105

.1.58. Inspection and Tests..............................................................................................105

.1.64. Warranty................................................................................................................106

.1.72. Delays in the Suppliers Performance...................................................................107

.1.76. Liquidated Damages..............................................................................................107

.1.78. Settlement of Disputes..........................................................................................108

.1.84. Limitation of Liability...........................................................................................108

.1.85. Force Majeure.......................................................................................................108

.1.89. Termination for Default........................................................................................109

.1.93. Termination for Insolvency...................................................................................109

.1.94. Termination for Convenience................................................................................110

.1.98. Termination for Unlawful Acts.............................................................................110.1.100. Procedures for Termination of Contracts............................................................111

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.1.102. Assignment of Rights..........................................................................................112

.1.103. Contract Amendment..........................................................................................112

.1.104. Application..........................................................................................................112

SECTION V. SPECIAL CONDITIONSOF CONTRACT................114

SECTION VI. SCHEDULEOF REQUIREMENTS......................129

SECTION VII. TECHNICAL SPECIFICATIONS.......................131

SECTION VIII. SAMPLEBIDDING FORMS..........................135

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A. General

.1.1. Scope of Bid

.1.2. The Procuring Entity named in the BDS (hereinafter referred to as the

Procuring Entity) wishes to receive bids for supply and delivery of the

goods as defined in theRrevised Implementing Rules and Regulations (IRR)-

A ofRepublic Act (RA) 9184(R.A. 9184) and described in Section I hereof

(hereinafter referred to as the Goods).

.1.3. The name, identification, and number of lots specific to this bidding are

provided in theBDS. The contracting strategy and basis of evaluation of lots

is described in ITB Clause 28G.

.1.4. Source of Funds

B. The Procuring Entity has a budget or has applied for or

received funds from the Funding Source named in the BDS, and in

the amount indicated in the BDSBDS. It intends to apply part of the

funds received for the Project, as defined in the BDSBDS, to cover

eligible payments under the contract..1.5. The PROCURING ENTITY has a budget or has applied for or received

financing (hereinafter called funds) from the source indicated in the BDS

(hereinafter called the Funding Source) toward the cost of the project named

in the BDS. The PROCURING ENTITY intends to apply a portion or thewhole of the funds to payments under the contract for which this Bidding

Documents is issued.

.1.6. Unless otherwise provided in the BDS, payments will be made only at

the request of the PROCURING ENTITY and upon approval by its Head in

accordance with the provisions, terms, and conditions of existing and

applicable law. No party other than the PROCURING ENTITY shall have a

right or claim over the budget specifically appropriated for the project.

.1.7. Corrupt, Fraudulent, Collusive, and Coercive Practices

.1.8. The Procuring Entity as well as the bidders, contractors, manufacturers,

orsuppliers or distributors shall observe the highest standard of ethics during

the procurement and execution of such contracts. In pursuance of this policy,

the Procuring Entity:

()a defines, for purposes of this provision, the terms set forth below as

follows:

()i corrupt practice means behavior on the part of officials in the

public or private sectors by which they improperly and unlawfully enrich

themselves, others, or induce others to do so, by misusing the position inwhich they are placed, and includes the offering, giving, receiving, or

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soliciting of anything of value to influence the action of any such official in

the procurement process or in contract execution; entering, on behalf of the

Government, into any contract or transaction manifestly and grossly

disadvantageous to the same, whether or not the public officer profited or will

profit thereby, and similar acts as provided in Republic Act 3019.

()ii fraudulent practice means a misrepresentation of facts in

order to influence a procurement process or the execution of a contract to the

detriment of the Procuring Entity, and includes collusive practices among

Bidders (prior to or after bid submission) designed to establish bid prices at

artificial, non-competitive levels and to deprive the Procuring Entity of the

benefits of free and open competition.

()iii collusive practices means a scheme or arrangement between

two or more Bidders, with or without the knowledge of the Procuring Entity,

designed to establish bid prices at artificial, non-competitive levels.

()iv coercive practices means harming or threatening to harm,

directly or indirectly, persons, or their property to influence their participation

in a procurement process, or affect the execution of a contract;

()b will reject a proposal for award if it determines that the Bidder

recommended for award has engaged in any of the practices mentioned in this

Clause for purposes of competing for the contract.

.1.9. Further, the Procuring Entity will seek to impose the maximum civil,

administrative and/or criminal penalties available under applicable laws on

individuals and organizations deemed to be involved in any of the practicesmentioned in ITB Clause BB.

.1.10. Furthermore, the Funding Source and the Procuring Entity reserve the

right to inspect and audit records and accounts of a supplier or contractor in

the bidding for and performance of a contract themselves or through

independent auditors as reflected in the GCC Clause I 3.

.1.11. Conflict of Interest

.1.12. All Bidders found to have conflicting interests shall be disqualified to

participate in the procurement at hand, without prejudice to the imposition ofappropriate administrative, civil, and criminal sanctions. A Bidder may be

considered to have conflicting interests with another Bidder in any of the

events described in paragraphs (a) through (c) below and a general conflict of

interest in any of the circumstances set out in paragraphs (d) through (f)

below:

()a A Bidder has controlling shareholders in common with another Bidder;

()b A Bidder receives or has received any direct or indirect subsidy from

any other Bidder;

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()c A Bidder has the same legal representative as that of another Bidder

for purposes of this bid;

()d A Bidder has a relationship, directly or through third parties, that puts

them in a position to have access to information about or influence on the bid

of another Bidder or influence the decisions of the Procuring Entity regardingthis bidding process. This will include a firm or an organization who lends, or

temporarily seconds, its personnel to firms or organizations which are engaged

in consulting services for the preparation related to procurement for or

implementation of the project if the personnel would be involved in any

capacity on the same project;

()e A Bidder submits more than one bid in this bidding process. However,

this does not limit the participation of subcontractors in more than one bid; or

.1.13. A Bidder who participated as a consultant in the preparation of the

design or technical specifications of the Goods and related services that are thesubject of the bid.

.1.14. In accordance with Section 47 of the IRR-A of R.A.RA 9184, all

Bidding Documents shall be accompanied by a sworn affidavit of the Bidder

that it is not related to the Head of the Procuring Entity, members of the Bids

and Awards Committee (BAC), the Technical Working Group (TWG), and the

BAC Secretariat, the head of the Project Management Office (PMO) or the

end-user unit, and the project consultants, by consanguinity or affinity up to

the third civil degree. or any of the PROCURING ENTITYs officers or

employees having direct access to information that may substantially affect the

result of the bidding, such as, but not limited to, the members of the BAC, themembers of the Technical Working Group (TWG), the BAC Secretariat, the

members of the Project Management Office (PMO), and the designers of the

project. This Clause shall apply to the following persons: On the part of the

Bidder, this Clause shall apply to the following persons:

()a If the Bidder is an individual or a sole proprietorship, to the Bidder

himself;

()b If the Bidder is a partnership, to all its officers and members;

()c If the Bidder is a corporation, to all its officers, directors, andcontrolling stockholders; and

()d If the Bidder is a joint venture (JV), the provisions of items (a), (b), or

(c) of this Clause shall correspondingly apply to each of the members of the

said JV, as may be appropriate.

Relationship of the nature described above or failure to comply with this

Clause will result in the automatic disqualification of a Bidder.

.1.15. Eligible Bidders

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.1.16. Unless otherwise indicated in the BDS, the following persons shall be

eligible to participate in this bidding:

()a Duly licensed Filipino citizens/sole proprietorships;

()b Partnerships duly organized under the laws of the Philippines and ofwhich at least sixty percent (60%) of the interest belongs to citizens of the

Philippines;

()c Corporations duly organized under the laws of the Philippines, and of

which at least sixty percent (60%) of the outstanding capital stock belongs to

citizens of the Philippines;

()d Cooperatives duly organized under the laws of the Philippines, and of

which at least sixty percent (60%) belongs to citizens of the Philippines; and

or

()e Persons/entities Manufacturers, suppliers and/or distributors forming

themselves into a JV, i.e., a group of two (2) or more persons/entitiesmanufacturers, Suppliers and/or distributors that intend to be jointly and

severally responsible or liable for a particular contract: Provided, however,

that Filipino ownership or interest of the joint venture concerned shall be at

least sixty percent (60%).

()f .; or

.1.17. Cooperatives duly registered with the Cooperatives Development

Authority (CDA).

.1.18. Unless otherwise indicated in the BDS, The Procuring Entity may also

invite Foreign bidders may be eligible to participate when any of the following

circumstances exist, as specified in the BDS:

()a When thea Treaty or International or Executive Agreement as provided

in Section 4 of the ActRA 9184 and its IRR allow foreign bidders to

participate;

()b Citizens, corporations, or associations of a country, included in the list

issued by the GPPB, the laws or regulations of which grant reciprocal rights or

privileges to citizens, corporations, or associations of the Philippines;

()c When the foreign supplier is a citizen, corporation or association of a

country included in the list issued by the GPPB, the laws or regulations of

which grant reciprocal rights or privileges to citizens, corporations, or

associations of the Philippines;

()d When the Goods sought to be procured are not available from local

suppliers; or

()e When there is a need to prevent situations that defeat competition or

restrain trade.

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.1.19. Government corporate entities may be eligible to participate in

Competitive Bidding only if they can establish that they (a) are legally and

financially autonomous, (b) operate under commercial law, and (c) are not

dependent agencies of the GOP or the Procuring Entity.

.1.20. Unless otherwise provided in theBDS, the Bidder must have completedat least one contract similar to the Project the value of which, adjusted to

current prices using the National Statistics Office consumer price index, must

be at least equivalent to a percentage of the ABC stated in the BDS.

twhen the GOODS sought to be procured are not available from local sources

as provided in this Clause, at the prescribed minimum specifications of the

PROCURING ENTITY and/or the Approved Budget for the Contract (ABC)

of the PROCURING ENTITY as certified by its Head, or when there is a need

to prevent situations that defeat competition or restrain trade, the said

PROCURING ENTITY may invite foreign Bidders not deemed eligible

pursuant to ITB Clause B.

Unless otherwise indicated in the BDS,citizens or organizations of a country

the laws or regulations of which grant similar rights or privileges to citizens of

the Philippines are eligible pursuant to R.A. 5183 and subject to C.A. 138.

A JV of two or more firms as partners shall comply with the following

requirements:

the Joint Venture Agreement (JVA) shall be signed so as to be legally binding

on all partners, unless otherwise indicated in the BDS;

one of the partners shall be authorized to be in charge; and this authorization

shall be evidenced by submitting a special power of attorney signed by legally

authorized signatories of all the partners;

the partner in charge shall be authorized to incur liabilities, receive payments

and receive instructions for and on behalf of any or all partners of the JV;

all partners of the JV shall be jointly and severally liable for adherence to this

ITB and performance of the contract in accordance with the contract terms,

and a relevant statement to this effect shall be included in the authorization

mentioned under (b) above as well as in the Bid Form and the Form ofContract Agreement (in case of a successful bid);

a copy of the notarized JVA entered into by the JV partners shall be submitted

with the Bidhe Bidder must have completed a contract or contracts similar to

the contract to be bid which value/s, adjusted to current prices using the

wholesale consumer price index, must be at least equivalent to that stated in

the BDS.

For this purpose, contracts similar to the Project shall be those described in the

BDS, and completed within the relevant period stated in the Invitation to

Bid.similar contracts as described in the BDS must have been completedwithin the period specified in the Invitation to Bid.

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()iii

()iv having acknowledged all conditions, local or otherwise,

affecting the implementation of the contract;

()v

()vi having made an estimate of the facilities available and needed

for the contract to be bid, if any; and

()vii

()viii having complied with its responsibility to inquire or secure

Supplemental/Bid Bulletin(/s) as provided underITB ClauseC11.3.

()a It is not blacklisted or barred from bidding by the GOP or any of its

agencies, offices, corporations, or LGUs, including foreign

government/foreign or international financing institution whose

blacklisting rules have been recognized by the GPPB;

()b Each of the documents submitted in satisfaction of the bidding

requirements is an authentic copy of the original, complete, and all

statements and information provided therein are true and correct;

()c It is authorizing the Head of the Procuring Entity or its duly authorizedrepresentative/s to verify all the documents submitted;

()d The signatory is the duly authorized representative of the Bidder, and

granted full power and authority to do, execute and perform any and all

acts necessary and/or to represent the Bidder in the bidding, with the

duly notarized Secretarys Certificate attesting to such fact, if the

Bidder is a corporation, partnership, cooperative, or joint venture;

()e It complies with the disclosure provision under Section 47 of theActRA 9184 in relation to other provisions ofRepublic ActRA 3019;

and

()f It complies with existing labor laws and standards, in the case of

procurement of services.

Failure to observe any of the above responsibilities shall be at the risk of the

Bidder concerned.

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The Bidder is expected to examine all instructions, forms, terms, and

specifications in the Bidding Documents. Unless otherwise indicated in

theBDS, failure to furnish all information or documentation required in

the Bidding Documents shall result in the rejection of the bid and the

disqualification of the Bidder.

.1.26. It shall be the sole responsibility of the Bidder to determine andto satisfy itself by such means as it considers necessary or desirable as

to all matters pertaining to the contract to be bid, including: (a) the

location and the nature of the contract, project or workthis Project; (b)

climatic conditions; (c) transportation facilities; (c) for the procurement

of infrastructure projects, nature and condition of the terrain, geological

conditions at the site communication facilities, requirements, location

and availability of construction aggregates and other materials, labor,

water, electric power and access roads; and (d) other factors that may

affect the cost, duration, and execution or implementation of the

contract, project or workthis Project.

.1.27. Before submitting their bids, the Bidders are deemed to have become

familiar with all existing laws, decrees, ordinances, acts and regulations of the

Philippines which may affect the contract in any way. However, in cases

where the cost of the awarded contract is affected by any applicable new laws,

ordinances, regulations or other acts of Government promulgated after the date

of bidding, a contract price adjustment shall be made or appropriate relief shall

be applied on a no loss-no gain basis, provided such is not covered by the

contract provisions on price adjustment.

.1.28. The Procuring Entity shall not assume any responsibility regarding

erroneous interpretations or conclusions by the prospective or eligible bidderout of the data furnished by the procuring entity.

.1.29. The Bidder shall bear all costs associated with the preparation and

submission of his bid, and the Procuring Entity will in no case be responsible

or liable for those costs, regardless of the conduct or outcome of the bidding

process.

.1.30. Before submitting their bids, the Bidder is deemed to have become

familiar with all existing laws, decrees, ordinances, acts and regulations of the

Philippines which may affect this Project in any way. However, in caseswhere the cost of the awarded contract is affected by any applicable new laws,

ordinances, regulations or other acts of the GOP promulgated after the date of

bidding, a contract price adjustment shall be made or appropriate relief shall

be applied on a no loss-no gain basis, provided such is not covered by the

contract provisions on price adjustment.[Note: transfer to GCC contract

price]

.1.31. Bidders The Bidder should note that the Procuring Entity will only

accept bids only from Biddersthose that havepurchasedpaid the nonrefundable

fee for the Bidding Documents from at the office indicated in the Invitation toBid.

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.1.32. .

.1.33. Origin of GoodsOODSand Services

Unless otherwise indicated in the BDS, there is no restriction on the origin of

GoodsOODS and services other than those prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United

Nations, subject to ITB Clause G.

.1.34.

.1.35. Subcontracts

The Bidder shall specify in its bid all portions of the Goods that will be subcontracted,

if any, including the entity(ies) to whom each portion will be subcontracted to, subject

to the maximum allowable limit for subcontracting of Goods specified in the BDS.

Subcontracting of any portion of the Goods shall not relieve the Bidder from anyliability or obligation that may arise from its performance.

C. Contents of Bidding Documents

.1.36. Pre-Bid Conference

.1.37. If so specified in the BDS, a pre-bid conference shall be held at the

venue and on the date indicated therein, tTo clarify and address the Bidders

questions on the requirements, technical and financial components of the

contract to be bidthis Project.terms and conditions, and specificationsstipulated in the Bidding Documents, a pre-bid conference shall be held at the

venue and on the date indicated in the BDS.

.1.38. Bidders are encouraged to attend the pre-bid conference to ensure that

they fully understand the Procuring Entitys requirements. Non-attendance of

the Bidder will in no way prejudice its bid; however, the Bidder is expected to

know the changes and/or amendments to the Bidding Documents discussed

during the pre-bid conference.

.1.39. Any statement made at the pre-bid conference shall not modify the

terms of the Bidding Documents unless such statement is specificallyidentified in writing as an amendment thereto and issued as a

Supplemental/Bid Bulletin.

.1.40. Clarification and Amendment of Bidding Documents

.1.41. 10.1. Bidders who have purchased the Bidding Documents may request

for clarifications on any part of the Bidding Documents for an interpretation.

Such a request must be in writing and submitted to the Procuring Entity at the

address indicated in the BDS at least ten (10) calendar days before the

deadline set for the submission and receipt of bids.Supplemental/Bid Bulletins

may be issued upon the Procuring Entitys initiative for purposes of clarifyingor modifying any provision of the Bidding Documents not later than seven (7)

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calendar days before the deadline for the submission and receipt of Bids. It is

the responsibility of the Procuring Entity to notify in writing, and through

posting in the website of the Procuring Entity and the Government Electronic

Procurement System (G-EPS) the said documents, all those who have properly

secured the Bidding Documents.

.1.42. 1 0 .2. Supplemental/Bid Bulletins may be issued upon the Procuring

Entitys initiative for purposes of clarifying or modifying any provision of the

Bidding Documents not later than seven (7) calendar days before the deadline

for the submission and receipt of bids. Any modification to the Bidding

Documents shall be identified as an amendment.

.1.43. Bidders who have submitted Bids before the issuance of the

Supplemental/Bid Bulletin must be informed and allowed to modify or

withdraw their Bids.

.1.44. 1 0 .3. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted on the Philippine Government Electronic Procurement System

(PHILhilGEPS) and the website of the Procuring Entity concerned, if

available. It shall be the responsibility of all Bidders who secure the Bidding

Documents to inquire and secure Supplemental/Bid Bulletins that may be

issued by the BAC. However, Bidders who have submitted bids before the

issuance of the Supplemental/Bid Bulletin must be informed and allowed to

modify or withdraw their bids in accordance with ITB Clause 23.

.1.45. ensure that they are aware of and secure any Bid Bulletins that may be

issued.

D. C. Preparation of Bids

.1.46. Language of Bid

The bid, as well as all correspondence and documents relating to the bid exchanged

by the Bidder and the Procuring Entity, shall be written in English. Supporting

documents and printed literature furnished by the Bidder may be in another language

provided they are accompanied by an accurate translation of the relevant passages in

English certified by the appropriate embassy or consulate of in the Philippines, in

which case the English translation shall govern for purposes of interpretation of thebid.

.1.47. Eligibility Check

.1.48. Unless otherwise indicated in the BDS, prior to Bid

opening the Bidder must first pass an eligibility check.

Only after a Bidder has satisfactorily passed this

eligibility check will its Bid be included in the Bid

opening. A Bidder shall include its eligibility documents

in a separate envelope marked Eligibility Documentsand shall be submitted together with the Technical and

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Financial Bid envelope on or before the deadline specified

in the BDS provision for ITB Clause E. At the Bid

opening, the PROCURING ENTITY shall first open the

envelope marked Eligibility Documents. The eligibility

documents are described in the following Clause.

.1.49. Eligibility Documents

.1.50. Class A Documents

Legal Documents

.1.51. Department of Trade and Industry (DTI) business name

registration or Securities and Exchange Commission

(SEC) registration certificate, whichever may be

appropriate under existing laws of the Philippines;

.1.52. Valid and current Mayors permit/municipal license;

.1.53. Taxpayers Identification Number;

.1.54. Statement of the prospective Bidder that it is not

blacklisted or barred from bidding by the Government

or any of its agencies, offices, corporations or LGUs,

including non-inclusion in the Consolidated BlacklistingReport issued by the GOP;

.1.55. Other appropriate licenses as may be required by the

PROCURING ENTITY concerned as indicated in the

BDS;

Technical Documents

.1.56. Statement of the prospective Bidder of all its ongoing and

completed government and private contracts within therelevant period, where applicable, including contracts

awarded but not yet started, if any. The statement shall

state for each contract whether said contract is: Ongoing,

Completed, or Awarded but not yet started: within the

relevant period, where applicable. The statement shall

include, for each contract, the following:

.1.57. the name of the Contract;

.1.58. date of the Contract;

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.1.59. kinds of goods sold;

.1.60. amount of Contract and value of outstanding contracts;

.1.61. date of delivery;

.1.62. end users acceptance, if completed; and

.1.63. specification whether prospective Bidder is a

manufacturer, Supplier or distributor;

Financial Documents

.1.64. The prospective Bidders audited financial statements,

stamped received by the BIR or its duly accredited and

authorized institutions, for the immediately precedingcalendar year, showing, among others, the prospective

Bidders total and current assets and liabilities;

.1.65. Prospective Bidders computation of its Net Financial

Contracting Capacity (NFCC) as described in the BDS, or

at the Bidders option, a commitment from a licensed

bank to extend a credit line, in the event of an award in

the Bidders favor, or at the Bidders option a cash

deposit certificate, of not less than the amount shown inthe BDS;

.1.66. Class B Documents

.1.67. Valid joint venture agreement pursuant to ITB Clause B,

in case of a JV;

.1.68. Letter authorizing the BAC or its duly authorized

representative(s) to verify any or all of the documents

submitted for the eligibility check; and

.1.69. Any other document listed in the BDS.

.1.70. If a Bidder has previously secured a Certification from

the PROCURING ENTITY to the effect that it has

previously submitted the above-enumerated Class A

Documents, the said Certification may be submitted in

lieu of the requirements enumerated in ITB Clause D.

.1.71.Unless otherwise indicated in the BDS, in the case of aprospective foreign Bidder, if eligible as described in ITB

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Clause B, the eligibility requirements described in ITB

Clauses D to D and D may be substituted with the

appropriate equivalent documents issued by the country

of the prospective Bidder concerned, such documents

must be duly acknowledged or authenticated by theappropriate Philippine Consulate therein.

.1.72. The prospective Bidder or its duly authorized

representative shall certify under oath that each of the

documents submitted in satisfaction of the eligibility

requirements is an authentic and original copy, or a true

and faithful reproduction or copy of the original,

complete, and that all statements and information

provided therein are true and correct.

.1.73. The PROCURING ENTITYs eligibility check will be

limited to establishing the completeness of each

prospective Bidders eligibility requirement by

determining the presence or absence of the documents

required against a checklist of requirements using non-

discretionary pass/fail criteria. The eligibility check will

not examine the substance of the contents of the

documents. If a prospective Bidder submits the specific

eligibility document required, it shall be rated as passedfor that particular requirement. However, failure to

submit a requirement or an incomplete or patently

insufficient submission shall be considered failed for

the particular eligibility requirement concerned.

.1.74. Documents Comprising the Bid, : Eligibility and

Technical ComponentsProposals

.1.1. Unless otherwise indicated in the BDS, Tthe first envelopeTechnical

Proposal,unless otherwise indicated in the BDS, shall contain the followingfollowingeligibility and technical documents information:. Unless otherwise

indicated in the BDS, the eligibility requirements shall comprise the

following:

()a Eligibility Documents

Class A Documents:

()i Registration certificate from the Securities and Exchange

Commission (SEC), Department of Trade and Industry (DTI) for sole

proprietorship, or Cooperative Development Authority (CDA) forcooperatives, or any proof of such registration as stated in theBDS;

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()ii Mayors permit issued by the city or municipality where the

principal place of business of the prospective bidder is located.

()iii Statement of all its ongoing and completed government and

private contracts within the relevant period stated in the BDS, where

applicable, including contracts awarded but not yet started, if any. Thestatement shall state for each contract whether said contract is: Ongoing,

Completed, or Awarded but not yet started, within the relevant period

specified in the Invitation to Bid. The statement shall include, for each

contract, the following:

(.iii.1) (c.1) the name of the contract;

(.iii.2) (c.2) date and status of the contract;

(.iii.3) (c.3) kinds of Goods sold;

(.iii.4) (c.4) amount of contract and value of outstanding

contracts;

(.iii.5) (c.5) date of delivery; and

(.iii.6) (c.6) end users acceptance or official receipt( /s)

issued for the contract, if completed.

()iv A udited financial statements, stamped received by the

Bureau of Internal Revenue (BIR) or its duly accredited and authorized

institutions, for the preceding calendar year, which should not be earlier than

two (2) years from bid submission;

()v C omputation of its Net Financial Contracting Capacity

(NFCC), computation or at the Bidders option a commitment from a

Universal or Commercial bank to extend a credit line in favor of the Bidder if

awarded the contract to be bidCLC, as described in accordance with ITB

Clause B5, of not less than the amount stated therein;

Class B Document :

()vi If applicable, the JVA in case the joint venture is already in

existence, or duly notarized statements from all the potential joint venturepartners stating that they will enter into and abide by the provisions of the JVA

in the instance that the bid is successful; and

.1.2. Technical Documents Unless otherwise indicated in the BDS, t he

technical documents shall mprisecomprise the following:

()a

()i The bid security in accordance with ITB Clause D. If the

Bidder opts to submit the bid security in the form of:;

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()a Financial Bid Financial Proposal Submission SheetForm, which

includes bid prices and the bill of quantities and the applicable Price

Schedules, in accordance with ITB Clauses D and D;D and D15.1 and 15.3;

and

()b If the Bidder claims preference as a Domestic Bidder or DomesticEntity, a certification from the DTI, SEC, or CDA issued in accordance with

ITB Clause G; andsecured by a Bidder:

()i from the DTI t hat it has all the qualifications required under

this Bidding Documents, in case of sole proprietorships, the SEC, in case of

partnerships and corporations, or the CDA, in case of cooperatives, if claiming

preference as a Domestic Entity; or

()ii from the DTI t hat the articles forming part of its bid are

substantially composed of articles, materials, or supplies grown, produces, or

manufactured in the Philippines, if claiming preference as a Domestic Bidder.

.1.5.

.1.6.

.1.7.

()a Any other document required in theBDSBDSBDS.

.1.8. Unless otherwise stated indicated in the Error! Hyperlink reference not

valid.BDSBDS, all Bids that exceed the ABC shall not be accepted.

.1.9. Bid Submission: Technical and Financial Proposals

.1.10. The Bidder shall submit their Bids through their

authorized managing officer or their authorized

representative using the appropriate Bid Form provided

in Section VIII. SampleBidding Forms on or before the

deadline specified in the ITB Clause E, and in two (2)

separate sealed envelopes, the first envelope containingthe technical component of the Bid and the second

envelope containing the financial component of the Bid

addressed to the BAC of the Procuring Entity. These

forms must be completed without any alterations to their

format, and no substitute form shall be accepted. All

blank spaces shall be filled in with the information

requested.

.1.11. The Bidder shall submit, as part of the Financial

Proposal, the Price Schedules for Goods and RelatedServices, according to their origin as appropriate, using

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the forms provided in Section VIII. SampleBidding

Forms.

.1.12. The Bidder shall bear all costs associated with the

preparation and submission of its bid, and the Procuring

Entity shall not be responsible or liable for those costs,

regardless of the conduct or outcome of the bidding

process.

.1.13. Alternative Bids

Alternative Bids shall be rejected. For this purpose, alternative bid is an offer made by

a Bidder in addition or as a substitute to its original bid which may be included as part

of its original bid or submitted separately therewith for purposes of bidding. A bid

with options is considered an alternative bid regardless of whether said bid proposal is

contained in a single envelope or submitted in two (2) or more separate bid envelopes.

.1.14. Bid Prices

.1.15. The Bidder shall complete the appropriate Price Schedules included

herein, stating the unit prices, total price per item, the total amount and the

expected countries of origin of the Goods to be supplied under the Ccontract

to be bidthis Project.

.1.16. The Bidder shall fill in rates and prices for all items of the Good s

described in the Bill of Quantities. Bids not addressing or providing all of the

required items in the Bidding Documents including, where applicable, Bill ofQuantities, shall be considered non-responsive and, thus, automatically

disqualified. In this regard, where a required item is provided, but no price is

indicated, the same shall be considered as non-responsive, but specifying a "0"

(zero) for the said item would mean that it is being offered for free to the

Government.

.1.17. The terms Ex Works (EXW), Cost, Insurance and Freight (CIF), Cost

and Insurance Paid to (CIP), Delivered Duty Paid (DDP),etc.and other trade

terms used to describe the obligations of the parties, shall be governed by the

rules prescribed in the current edition ofthe International Commercial Terms

(INCOTERMS) published by the International Chamber of Commerce, Paris.

.1.18. Prices indicated on the Price Schedule shall be entered separately in the

following manner:

()a For Goods offered from within the Procuring Entitys country:

()i (a.1) The price of the Goods quoted EXW (ex works, ex

factory, ex warehouse, ex showroom, or off-the-shelf, as applicable), including

all customs duties and sales and other taxes already paid or payable:

(.i.1) on the components and raw material used in themanufacture or assembly of Goods quoted ex works or ex factory; or

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(.i.2) on the previously imported Goods of foreign origin

quoted ex warehouse, ex showroom, or off-the-shelf and any Procuring Entity

country sales and other taxes which will be payable on the Goods if the

contract is awarded.

()ii (a.2) The price for inland transportation, insurance, and otherlocal costs incidental to delivery of the Goods to their final destination.;

()iii (a.3) The price of other (incidental) services, if any, listed in

the Error! Hyperlink reference not valid.BDS.

()b For Goods offered from abroad:

()i (b.1) Unless otherwise stated in the BDS, tthe price of the

Goods shall be quoted DDP with thenamed place of destination, in the

Philippines , as specified in the BDSBDS. In quoting the price, the Bidder

shall be free to use transportation through carriers registered in any eligiblecountry. Similarly, the Bidder may obtain insurance services from any

eligible source country.

()ii (b.2) The price of other (incidental) services, if any, listed in

the BDSBDS.

.1.19. Prices quoted by the Bidder shall be fixed during the Bidders

performance of the contract and not subject to variation or price escalation on

any account, unless otherwise specified in the BDS. A bid submitted with an

adjustable price quotation shall be treated as non-responsive and shall be

rejected, pursuant to ITB Clause E..

.1.20. For the given technical specifications in the contract as awarded, All bid

prices shall be considered as fixed prices, and therefore not subject to price

escalation during contract implementation, except under extraordinary

circumstances as indicated in the Error! Hyperlink reference not

valid.BDSBDS and specified in the GCC Clause__ and its corresponding

SCC provision.

.1.21.

.1.22.

.1.23.

.1.24. Bid Currencies

.1.25. Prices shall be quoted in the following currencies:

()a For Goods and services that the Bidder will supply from within the

Philippines, the prices shall be quoted in Philippine Pesos.

()b For Goods and services that the Bidder will supply from outside thePhilippines, the prices may be quoted in the currency(ies) stated in the Error!

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Hyperlink reference not valid.BDS. However, for purposes of bid evaluation,

bids denominated in foreign currencies shall be converted to Philippine

currency based on the exchange rate as published in the BSP reference rate

bulletin exchange rate prevailing on the day of the bid opening..

.1.26. If so allowed in accordance with ITB Clause D, the Procuring Entity forpurposes of bid evaluation and comparing the bid prices will convert the

amounts in various currencies in which the bid price is expressed to Philippine

Pesos at the foregoing exchange rates.

.1.27.

.1.28. Unless otherwise specified in the Error! Hyperlink reference not

valid.BDS, payment of the contract price shall be made in Philippine Pesos.

.1.29. Documents Establishing the GOODS Conformity to the

Bidding Documents

.1.30. The documentary evidence of conformity of the Goods

and services to the Bidding Documents may be in the

form of literature, drawings, and data, and shall consist

of:

.1.31. a detailed description of the essential technical and

performance characteristics of the Goods;

.1.32. a list giving full particulars, including available sourcesand current prices of spare parts, special tools, etc.,

necessary for the proper and continuous functioning of

the Goods for a period to be specified in the BDS,

following commencement of the use of the GOODS by the

Procuring Entity; and

.1.33. an item-by-item commentary on the Procuring Entitys

Technical Specifications demonstrating substantial

responsiveness of the GOODS and services to those

specifications, or a statement of deviations and exceptions

to the provisions ofSection VII. Technical Specifications.

.1.34. Standards for workmanship, process, material, and

equipment, are intended to be descriptive only and not

restrictive. The Bidder may offer other standards of

quality, brand names, and/or catalogue numbers,

provided that it demonstrates, to the Procuring Entitys

satisfaction, that the substitutions are equivalent or as

specified in the technical specifications and/ or Scheduledperformance.

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.1.35. Bid Validity

.1.36. Bids shall remain valid for the period specified in the Error! Hyperlink

reference not valid.BDS which shall not exceed one hundred twenty (120)

calendardays from the date of the opening of bids.

.1.37. In exceptional circumstances, prior to the expiration of the Bid validity

period, the Procuring Entity may request Bidders to extend the period of

validity of their bids. The request and the responses shall be made in writing.

The bid security described in ITB Clause D18 should also be extended

corresponding to, at least, the extension of the bid validity period. A Bidder

may refuse the request without forfeiting its bid security, but his bid shall no

longer be considered for further evaluation and award. A Bidder granting the

request shall not be required or permitted to modify its bid.

.1.38. Bid Security

.1.39. The bid security in the amount stated in the BDS shall be equal to the

percentage of the ABC in accordance with the following schedule:

Form of Bid Security

Amount of Bid Security

(Equal to Percentage of the ABC)

Cash, cashiers/managers

check, bank draft/guarantee

confirmed by a Universal or

Commercial Bank;

Irrevocable letter of creditissued by a Universal or

Commercial Bank: Provided,

however, that it shall be

confirmed or authenticated by a

Universal or Commercial Bank,

if issued by a foreign bank; Two percent (2%)

Irrevocable letter of credit issued by a

Universal or Commercial Bank:

Provided, however, that it shall be

confirmed or authenticated by a

Universal or Commercial Bank, if

issued by a foreign bank.;

Surety bond callable upon

demand issued by a surety or

insurance company duly

certified by the Insurance

Commission as authorized to

issue such security.; and/or

Five percent (5%)

Any combination of the

foregoing.

Proportionate to share of form

with respect to total amount of

security

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.1.40. For biddings conducted by Local Government Units (LGUs), the Bidder

may also submit bid securities in the form of cashiers/managers check, bank

draft/guarantee, or irrevocable letter of credit from other banks certified by the

BSP as authorized to issue such financial statement.

.1.41. Pursuant to ITB Clause D, the Bidder shall furnish, as part of its Bid, abid security in the form and amount specified in the BDS. The PROCURING

ENTITY shall prescribe the acceptable forms of Bid Security from among the

following, from which acceptable forms the Bidder may choose:

.1.42. cash;

.1.43. cashiers or certified check;

.1.44. irrevocable letter of credit;

.1.45. bank guarantee;

.1.46. surety bond; or

.1.47. foreign government guarantee.

.1.48. In case of a bank guarantee, the Bid Security shall be submitted using

the Bid Security Form included in Section VIII. SampleBidding Forms or

another form acceptable to the Procuring Entity. The form must include the

complete name of the Bidder.

.1.49. The bid security should be valid for the period specified in the Error!

Hyperlink reference not valid.BDS. Any Bbid not accompanied by anacceptable Bid bid security shall be rejected by the Procuring Entity as non-

responsive.

.1.50. No bid securities shall be returned to bidders after the opening of bids

and before contract signing, except to those that failed or declared as post-

disqualified, upon submission of a written waiver of their right to file a motion

for reconsideration and/or protest. that failed to comply with any of the

requirements to be submitted in the first bid envelope of the bid. Without

prejudice on its forfeiture, bid securities shall be returned only after the bidder

with the Lowest Calculated and Responsive Bid has signed the contract and

furnished the performance security, but in no case later than the expiration of

the bid security validity period indicated in the BDS.

.1.51. Upon signing and execution of the contract, pursuant to ITB Clause I,

and the posting of the performance security, pursuant to ITB Clause I, the

successful Bidders bid security will be discharged, but in no case later than

the bid security validity period as indicated in the BDS.

.1.52. The bid security may be forfeited:

()a if a Bidder:

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.1.73. bear the name and address of the Bidder in capital letters;

.1.74. be addressed to the Procuring Entitys BAC in

accordance with ITB Clause A;

.1.75. bear the specific identification of this bidding processindicated in the ITB Clause A; and

.1.76. bear a warning DO NOT OPEN BEFORE the date

and time for the opening of Bids, in accordance with ITB

Clause E.

.1.77. If all envelopes are not sealed and marked as required,

the Procuring Entity will assume no responsibility for the

misplacement or premature opening of the Bid.

.1.78. Deadline for Submission of Bids

Bids must be received by the Procuring Entitys BAC at the address and on or before

the date and time indicated in the Error! Hyperlink reference not valid.BDS.

.1.79. Late Bids

Any bid submitted after the deadline for submission and receipt of bids prescribed by

the Procuring Entity, pursuant to ITB Clause E, shall be declared Late and shall not

be accepted by the Procurin