Law Summary
Terms and Conditions for Use of Alternative Procurement Methods
For negotiated procurement under Item (a) of Section 53:
- The procuring entity must create a list of at least three qualified suppliers, contractors, or consultants.
- Invitations to submit bids followed by negotiations should be with the lowest calculated or highest rated bidder, depending on applicability.
- If the lowest bidder’s offer does not meet original specifications and the Approved Budget for the Contract (ABC), negotiations proceed in ascending order of bid prices until a responsive bid is found.
- The contract award decision must be posted on the Government Electronic Procurement System (G-EPS) website, procuring entity’s website if available, and in a conspicuous location at the procuring entity’s premises.
For negotiated procurement under Item (b) of Section 53:
- Negotiations may be entered with previous suppliers or contractors of good standing or those located near the site of calamity or emergency.
- The contract award must be posted similarly on the G-EPS and procuring entity’s website and premises.
Contract Prices and Currency Denomination
- Bid prices are treated as fixed and not subject to price escalation, except in extraordinary circumstances with prior GPPB approval.
- Contracts are to be denominated and payable in Philippine pesos unless the GPPB guidelines allow payment or bidding in foreign currency.
- When bids are received in foreign currency, exchange rates as of the bid opening date must be used for bid comparison and evaluation.
General Provisions
- All other provisions of the Implementing Rules and Regulations Part A of RA 9184 remain unchanged.
- This Memorandum Order took effect immediately upon its publication in a newspaper of general circulation.