FREQUENTLY ASKED QUESTIONS:
Question #1: Can we procure supplies and materials not used for COVID-19 related situations under Emergency-Bayanihan Act, R.A. 11469?
If referring to Emergency Procurement- Bayanihan Act, please refer to GPPB Circular 01-2020. Identified items under this provision are:
a. Goods, which may include personal protective equipment such as gloves, gowns, masks, goggles, face shields; surgical equipment and supplies; laboratory equipment and its reagents; medical equipment and devices; support and maintenance for laboratory and medical equipment, surgical equipment and supplies; medical supplies, tools, and consumables such as alcohol, sanitizers, tissue, thermometers, hand soap, detergent, sodium hydrochloride, cleaning materials, povidone-iodine, common medicines (e.g., paracetamol tablet and suspension, mefenamic acid, vitamins tablet and suspension, hyoscine tablet and suspension); testing kits; and such other supplies or equipment as may be determined by the Department of Health and other relevant government agencies;
b. Goods and services for social amelioration measures in favor of affected communities;
c. Lease of real property or venue for use to house health workers or serve as quarantine centers, medical relief and aid distribution locations or temporary medical facilities;
d. Establishment, construction, and operation of temporary medical facilities;
e. Utilities, telecommunications, and other critical services in relation to the operation of quarantine centers, medical relief and aid distribution centers and temporary medical facilities; and
f. Ancillary services related to the foregoing
Question #2: Required po ba ang performance bond under Emergency-Bayanihan Act?
Under the Emergency Procurement-Bayanihan Act, GPPB Circular 01-2020, performance bond and warranty security not required.
Question #3: Given the new normal, how do we proceed with the procurement of regular projects? Are there any alternative procedures? Some of the projects do not fall under the Bayanihan Act nor the regular emergency cases.
Online bidding is part of the PhilGEPS modernization program. The core issue is the security of online bid submission, which must be validated and approved. For this purpose, PEs shall establish their respective internal rules to ensure the security, integrity, and authenticity of the documents electronically submitted and the use of the digital or electronic signature. The BAC shall decide whether to allow the online or electronic submission and receipt of bids based on the PE’s procurement needs and capabilities. (GPPB Res. 09-2020)
Question #4: Does the submission of notarized Omnibus Sworn Statement after awarding of the contract and before payment is also applicable to other procurement modalities during ECQ?
Item 6, GPPB Resolution 09-2020:
6. In consideration of the limited access to financial institutions, regulatory and other offices, as well as the implementation of government restrictions on transport and travel, ALLOW PEs to accept the following alternate documentary requirements for procurement activities during the State of Calamity, or implementation of community quarantine or similar restrictions declared or being implemented either in the locality of the PE or of the Bidder:
6.1. Unnotarized Bid Securing Declaration;
6.2. Expired Business or Mayor’s permit with Official Receipt of the renewal application, subject to the submission of Business or Mayor’s permit after awarding of contract but before payment;
6.3. Unnotarized Omnibus Sworn Statement subject to compliance therewith after awarding of contract but before payment; and
6.4. Performance Securing Declaration (PSD) in lieu of performance security to guarantee the winning bidder’s faithful performance of obligations under the contract, subject to the following:
a. Similar to the PSD used in Framework Agreement, such declaration shall state, among others, that the winning bidder shall be blacklisted from being qualified to participate in any government procurement activity for one (1) year, in case of first offense or two (2) years, if with a prior similar offense, in the event it violates any of the conditions stated in the contract. A copy of the PSD form is attached hereto as Annex “A”;
b. An unnotarized Performance Securing Declaration (PSD) may be accepted, subject to the submission of a notarized PSD before payment unless the same is replaced with performance security in the prescribed form, as stated below; and
c. The end-user may require the winning bidder to replace the submitted PSD with performance security in any of the prescribed forms under Section 39.2 of the 2016 revised IRR of RA No. 9184 upon lifting of the State of Calamity, or community quarantine or similar restrictions, as the case may be.
The BAC shall determine or validate the existence of the State of Calamity, or implementation of community quarantine or similar restrictions and may require the submission of documentary proof for this purpose.
Question #5: How about if you need to rent a van to shuttle personnel who will work as a skeletal workforce to ensure health safety, pwede po ba ito mag fall sa Emergency Procurement-Bayanihan Act?
PE is in the best position to justify whether it will fall into ancillary services related to COVID-19, taking into consideration the limitations cited under DBM NBC No. 580.
Question #6: Can we cancel contracts already signed but not yet started on the ground that it needs the fund to procure COVID-19 Response Items?
Relevant to GPPB Resolution 09-2020:
Given the COVID-19 pandemic, PEs may retroactively suspend the conduct of procurement activities beginning 9 March 2020 following the declaration by the President of a State of Public Health Emergency throughout the Philippines, subject to the determination by the BAC of the existence of any of the grounds for the suspension of the conduct of procurement activities and compliance with the notice requirement.
8. ALLOW the subsequent tolling of the periods for the Procurement Projects covered by the suspension, including the running of the 3-month period to award the contract and terminate the procurement process under Section 38 of RA No. 9184, during the suspension of the conduct of procurement activities, as determined by the BAC. The suspension of the conduct of procurement activities shall be lifted upon determination of the BAC that the basis for the suspension no longer exists or upon the lifting of the State of Calamity, or implementation of community quarantine or similar restrictions, as the case may be. In which case, the BAC shall notify all affected bidders of the lifting of the suspension and post a notice on the PE’s website, if any.
The period for the conduct of procurement activities shall run again upon posting of the notice of resumption of procurement activities on the website of the PE if any, or in the absence thereof, any conspicuous place in the premises of the PE. The PE shall likewise inform the affected bidders of the resumption of procurement activities for the participation and/or compliance, as the case may be.
The period of action on procurement activities shall not commence anew but rather, grants the PE the balance of the remaining period available for the conduct of procurement activities which has been tolled or suspended.
9. Without prejudice to Section 35.1 of the 2016 revised IRR of RA No. 9184, ALLOW the BAC, upon consultation with the end-user unit, to cancel or terminate the conduct of procurement activities for any justifiable reason, such as but not limited to:
9.1. the physical and economic conditions have significantly changed so as to render the project no longer economically, financially, or technically feasible, as determined by the end-user unit;
9.2. the project is no longer necessary as determined by the end-user unit;
9.3. the source of funds for the project has been withheld or reduced through no fault of the PE; or
9.4. brought about by the declaration of a State of Calamity or implementation of community quarantine or similar restrictions.
The cancellation or termination authorized herein shall be allowed at any time, not just during the State of Calamity, or implementation of community quarantine or similar government restrictions.
Question #7: What are the alternate documentary requirements for competitive bidding or online bidding under GPPB Resolution 09-2020?
Item 6, GPPB Resolution 09-2020:
6. In consideration of the limited access to financial institutions, regulatory and other offices, as well as the implementation of government restrictions on transport and travel, ALLOW PEs to accept the following alternate documentary requirements for procurement activities during the State of Calamity, or implementation of community quarantine or similar restrictions declared or being implemented either in the locality of the PE or of the Bidder:
6.1. Unnotarized Bid Securing Declaration;
6.2. Expired Business or Mayor’s permit with Official Receipt of the renewal application, subject to the submission of Business or Mayor’s permit after awarding of contract but before payment;
6.3. Unnotarized Omnibus Sworn Statement subject to compliance therewith after awarding of contract but before payment; and
6.4. Performance Securing Declaration (PSD) in lieu of performance security to guarantee the winning bidder’s faithful performance of obligations under the contract, subject to the following:
d. Similar to the PSD used in Framework Agreement, such declaration shall state, among others, that the winning bidder shall be blacklisted from being qualified to participate in any government procurement activity for one (1) year, in case of first offense or two (2) years, if with a prior similar offense, in the event it violates any of the conditions stated in the contract. A copy of the PSD form is attached hereto as Annex “A”;
e. An unnotarized Performance Securing Declaration (PSD) may be accepted, subject to the submission of a notarized PSD before payment unless the same is replaced with performance security in the prescribed form, as stated below; and
f. The end-user may require the winning bidder to replace the submitted PSD with performance security in any of the prescribed forms under Section 39.2 of the 2016 revised IRR of RA No. 9184 upon lifting of the State of Calamity, or community quarantine or similar restrictions, as the case may be.
The BAC shall determine or validate the existence of the State of Calamity, or implementation of community quarantine or similar restrictions and may require the submission of documentary proof for this purpose.
Question #8: Are there new guidelines regarding tax clearance? Some bidders cannot renew their tax clearance due to ECQ.
Please refer to alternate documents cited in GPPB Resolution 09-2020.
Question #9: Can you renew the contract of water, electricity, telecom, and the internet during the quarantine period?
Revised Guidelines on Procurement of WETI Service Providers
(Resolution No. 41-2017)
– During the effectivity of the contract, or upon its renewal, the PE may consider the expansion or reduction of the services provided by the existing service provider subject to the need of the PE and the best way by which such need may be addressed and satisfied
– Resort to competitive bidding, or any of the applicable alternative methods of procurement in case there is more than one service contractor operating within the area
Question #10: Pwede ba akong mag reimburse ng mga emergency items during the Emergency-Bayanihan Act sa mga purchases online kagaya ng Lazada at iba pa?
Yes, but you need to observe the revenue regulations on withholding tax, and the issuance of official receipt or proof of sale.
RR 7-2019, The term “local resident suppliers of goods/suppliers of services” pertains to a supplier from whom any of the top withholding agents, regularly makes its purchases of goods/services. As a general rule, this term does not include a casual purchase of goods/services that is a purchase made from a non-regular supplier and oftentimes involving a single purchase. However, a single purchase which involves Ten thousand pesos (P10,000) or more shall be subject to withholding tax under this subsection. The term ”regular suppliers”. for purposes of these regulations refer to suppliers who are engaged in business or exercise of profession/calling with whom the taxpayer-buyer has transacted at least six (6) transactions regardless of the amount per transaction, either in the previous year or current year”
Please refer also to OP Memorandum No. 14-22 dated 19 March 2014 which provide specific details on reimbursement:
General Guidelines: For MOOE and all other logistics associated with projects crucial to successful delivery and completion of outputs.
Specific guidelines:
• Claims for reimbursements not exceeding Php10,000 shall be in the name of the university official who paid in advance.
• Claims for reimbursements Php10,000 or more shall be in the name of the university and shall be subject to appropriate withholding taxes.
Question #11: What are the documentary requirements for the new modality Emergency Procurement under the Bayanihan Act, R.A. 11469, and GPPB Circular 01-2020?
GPPB Resolution No. 06-2020, dated 6 April 2020:
4. DOCUMENTARY REQUIREMENTS
4.1. PEs already maintaining a bidder’s updated file of any of the following requirements, whether through the Philippine Government Electronic Procurement System Certificate of Registration and Membership or its records, shall not require its re-submission.
Otherwise, PEs shall require copies of:
a. Mayor’s or Business Permit;
For projects with an ABC above PhP500,000.00:
b. Income Tax Returns (Annual Income Tax Return of the preceding tax year) OR Business Tax Returns (Value Added Tax or Percentage Tax Return covering the previous six months);
c. OSS, which shall be an original copy;
Additional requirements for Infrastructure Projects:
d. Philippine Contractors Accreditation Board License; and
e. NFCC for Infrastructure Projects with an ABC above PhP500,000.00.
4.2. Bidders may submit their documentary requirements in printed copies or by electronic mail or facsimile. Any and all documentary requirements, except the OSS, shall be submitted at any time before award of contract or after award but before payment.
4.3. The OSS shall be submitted at any time before award of contract. An unnotarized OSS may be accepted by the PE subject to compliance therewith after awarding of contract but before payment.
4.4. The PE is allowed to accept a copy of the recently expired Mayor’s or Business Permit and the Official Receipt as proof of application and payment for the renewal of the permit will suffice, subject to the submission of the Mayor’s Permit after awarding of the contract.
4.5. The use of a digital signature or similar means may be used in all procurement related documents.
. . .
6. DIRECT PURCHASE FROM LOCAL FARMERS
6.1. To ensure the availability of food for all affected sectors, PEs are encouraged to directly purchase agricultural products from local farmers or farmers’ associations or cooperatives. Procurement from farmers’ associations or cooperatives shall follow the procedure and requirements above-stated.
6.2. For direct negotiation with local farmers, the submission of any of the following at any time before award or after award but before payment shall be sufficient:
a. a certification that the farmer is in the Registry System for Basic Sectors in Agriculture (RSBSA);
b. RSBSA identification card; or
c. Barangay Certification that the supplier is a bonafide farmer.
6.3. PEs shall be guided by the following in the negotiation of prices for agricultural products:
a. the average prevailing farmgate price for the province, if purchased directly from the farmers;
b. the market price, if purchased from farmers’ association or cooperative; or
c. the recommended retail price by the local price coordinating council for commodities sold by capable farmers, and farmers’ associations or cooperatives in their respective provinces, municipalities, and cities.
6.4. The farmer shall sign the disbursement voucher prepared by the PE to show actual delivery and receipt of payment. This shall likewise serve as the delivery invoice showing the quantity, description of the articles, unit and total value of the items delivered.
Question #12: Kailangan pa ba ng RFQ/RFP or canvass sa Emergency Procurement-Bayanihan Act?
GPPB Resolution No. 06-2020, dated 6 April 2020
3.3. PEs shall then directly negotiate or procure from a legally, technically, and financially capable supplier, distributor, manufacturer, contractor, or consultant.
The HoPE is encouraged to delegate the authority to directly negotiate or conduct the procurement activities to the End-user unit or any other appropriate bureau, committee, support, or procuring unit. If no delegation is made, the Bid and Awards Committee (BAC) shall be the one to undertake the negotiation or procurement.
During negotiations, a formal written offer or bid may be submitted but is not required. Verbal agreement on the price and compliance or commitment to comply with the legal, technical and financial requirements of the Procurement Project shall be sufficient basis to recommend the award of a contract to the supplier, distributor, manufacturer, contractor, or consultant.
A legally, technically, and financially capable supplier, distributor, manufacturer, contractor, or consultant is one that meets the requirements provided in Item 3.4 of this Circular.
3.4. The BAC or End-user unit or any other appropriate bureau, committee, support or procuring unit duly authorized by the HoPE, shall immediately recommend the award of a contract to one that has the legal, technical, and financial capability to undertake the procurement at hand, to wit:
a. submitted the mandatory documentary requirements under Item 4.1 of this Circular or if said documents were to be submitted after award of contract, has committed to comply with the same in the Omnibus Sworn Statement (OSS), with the stipulations provided in Appendix 1 for the OSS form for Emergency Procurement under the Bayanihan Act;
b. complied with the technical specifications, the scope of work or terms of reference set by the PEs, and other documents supporting the same, including appropriate licenses and permits required by law or rules, or if said documents were required to be submitted after award of contract, has committed to comply with the same in the OSS; and
c. submitted any financial requirements of the project such as the Net Financial Contracting Capacity (NFCC), in case of Infrastructure Projects, or if said documents were required to be submitted after award of contract, has committed to comply with the same in the OSS.
For foreign suppliers, the equivalent document in their jurisdiction would suffice consistent with Section 23.2 of 2016 revised Implementing Rules and Regulations of RA No. 9184
Question #13: When is the effectivity of the Guidelines on the Emergency Procurement under the Bayanihan Act (GPPB Circular No. 01-2020)?
It shall take effect immediately upon its publication on 12 April 2020 until 23 June 2020 or three (3) months from 25 March 2020, the effectivity of the Bayanihan Act. (Item 11 of GPPB Circular No. 01-2020)
Question #14: Can PEs apply the rules on Emergency Procurement under the Bayanihan Act for ongoing procurement activities using the rules under Negotiated Procurement (Emergency Cases)?
No. Procurement activities undertaken pursuant to Section 53(b) of RA No. 9184 and Section 53.2 of its 2016 IRR shall remain to be covered by said rules unless the same is cancelled and a new procurement covering the projects under the Bayanihan Act is commenced on or after 12 April 2020 following the Circular.
Question #15: Is an approved APP required prior to the conduct of Emergency Procurement under the Bayanihan Act?
As a general rule yes, however, in view of the urgent necessity of the procurement covered under the Bayanihan Act, the PE may commence with the procurement even without an approved APP, provided there is a document or certification from the budget officer or equivalent position showing that there is a budget for the purpose.
The APP shall be approved thereafter and posted on the PE’s website and the GPPB online portal for Emergency Procurement under the Bayanihan Act on or before 30 September 2020. (Item 9 of GPPB Circular No. 01-2020)
Question #16: Can the PE accept an unnotarized OSS given the difficulty of securing the services of a notary public under a State of Emergency or Calamity or Enhanced Community Quarantine?
Yes, an unnotarized OSS may be accepted by the PE subject to compliance therewith after awarding of contract but before payment. (Item 4.3 of GPPB Circular No. 01-2020)
Question #17: Can PEs procure from foreign bidders pursuant to Emergency Procurement under the Bayanihan Act and if so, what are documents required from them?
Yes. For foreign suppliers, the equivalent document in their jurisdiction would suffice consistent with Section 23.2 of the 2016 revised IRR of RA No. 9184. (Item 3.4 of GPPB Circular No. 01-2020)
Question #18: What if no one supplier can deliver the needed quantity, can PEs procure from various suppliers? If yes, will this be considered Splitting of Contracts?
If after conducting initial market scanning or scoping, it is found that no one supplier is able to provide the total required quantity, PEs are allowed to procure from several sources, and the same shall not be considered as Splitting of Contracts. (Item 3.1 of GPPB Circular No. 01-2020)
Question #19: Is there a posting requirement for projects procured using the Emergency Procurement under the Bayanihan Act?
Yes. The BAC, through its Secretariat, shall post for information purposes procurement data on the following:
a. PE’s website or if none, any conspicuous place in its premises; and
b. GPPB online portal for Emergency Procurement under the Bayanihan Act.
In light of the posting limitations in the PhilGEPS platform, the GPPB online portal was created where PEs are required to post the following information relative to the Procurement Projects undertaken through Emergency Procurement under the Bayanihan Act:
a. Updated APP;
b. Project Name;
c. ABC;
d. Contract period;
e. Name of Winning Supplier, Distributor, Manufacturer, Contractor or Consultant;
f. Amount of Contract as Awarded;
g. NOA;
h. Date of award and acceptance; and
i. Contract or Purchase Order.
The posting also includes those procured through the Department of Budget and Management-Procurement Service either under Negotiated Procurement (Agency-to-Agency) for the purchase of Common-Use Supplies and Equipment or as a procurement agent pursuant to Sections 53.5 and 7.3.3(a) of the 2016 IRR of RA No. 9184, respectively.
In this regard, the PEs are directed to submit the name, position, and official email address of its principal and alternate representatives at GPPBonlineportal@gppb.gov.ph.
For the PE representatives to register on the GPPB online portal through https://www.cognitoforms.com/GPPB1/ProcuringEntity.
Once approved, PEs may now post the required procurement information through https://www.cognitoforms.com/GPPB1/AwardedContracts.
Question #20: Kung walang canvass, ano ang basis ng pricing?
PEs shall negotiate for the most advantageous price to the government based on:
a. existing price data of the agency, the Department of Trade and Industry, or other relevant agencies; or
b. preliminary market scanning is done by the agency showing prevailing market prices and practice.