Table 2-11: The Public Bidding Process under RA 7718 (Option 1)

Private Sector

Process Flow

LGU

PROJECT ID AND PREPARATION

Prepares the FS and the contract including all necessary documents and submits to the Approving Body.

APPROVAL BY APPROVING BODY (ICC, NEDA BOARD, LOCAL SANGGUNIANS)

Approving Body is given 30 calendar days (cd) to approve the project and the contract. The subsequent steps ensue only upon approval of the project. If project is disapproved, the LGU can revise and resubmit it or shelve it.

Secures PQ forms and instructions from the LGU.

ADVERTISEMENT/ INVITATIONTO PRE-QUALIFY AND BID

Upon approval of the project and the contract, the PBAC publishes PQ invitation, once a week for 3 consecutive weeks (21 days), in at least 2 newspapers of general circulation and in at least 1 local newspaper of general circulation in the region, province, city or municipality in which the projects are to be implemented. Invitation shall also be posted continuously in the website of the LGU concerned, if available, during the stated period. For projects costing at least US$ 10 million, the invitation may also be published in at least 1 international publication. Likewise, LGU shall issue official notification of the same to project proponents registered with them.

Prepares PQ documents at least 30 cd from last date of publication of the invitation. For projects costing at least Php300 million, period of preparation is at least 45 cd from last date of publication of invitation.

PREPARATION OF PRE-QUALIFICATION DOCUMENTS

Submit PQ documents. Disqualified bidders may within 15 working days from receipt of notice of disqualification, appeal to the Head of Agency for national projects, or in the case of local projects, to the Head of the DILG unit concerned or his authorized representative. A non-refundable appeal fee shall be filed amounting to no less than one-half of one percent (0.5%) of the project cost.

PRE-QUALIFICATION OF BIDDERS

PBAC shall, within 30 cd after the deadline for the submission of PQ documents, determine who among the prospective project proponents are "pre-qualified" and "disqualified". The PBAC shall inform pre-qualified and disqualified project proponents of its decision within 7 cd. A disqualified proponent may appeal the disqualification to the DILG, in the case of local projects, within 15 working days from receipt of notice of disqualification. In case of an appeal, the Head of Agency or DILG unit concerned shall act on the appeal within 45 working days from receipt of appeal and upon filing of a nonrefundable appeal fee.

Pre-qualified bidders are given about 90 to 120 cd to prepare the bid.

Projects that cost less than Php300 M - approximately 90 cd Projects that cost above PhP300 M - approximately 120 cd

FOR PROPOSAL (RFP)/BID PREPARATION

Issues the request for proposal/tender documents to the pre-qualified bidders. LGU shall conduct a pre-bid conference at least: a) 30 cd before the deadline for bid submission, for projects costing less than PhP300 million; and b) 60 to 120 cd before the deadline for bid submission, for projects costing P300 million and above.

Bidders submit their proposal in two envelopes: First envelope - the technical proposal, including the bid security; and Second envelope -the financial proposal.

BID SUBMISSION AND EVALUATION

Evaluation of the technical proposal within 30 cd from the date of opening of bids. The evaluation of the financial proposal shall be completed within 15 cd from the date the evaluation of the technical proposal shall have been completed.

APPROVAL OF CONTRACT AWARD

Recommendation for contract award within 7 cd after completion of the financial evaluation. Head of LGU approves recommendation for contract award within 7 cd after submission of PBAC recommendation. All unsuccessful bidders shall be informed in writing of the results of the bidding.

Winning project proponent receives "Notice of Award" and shall comply, within 30 cd, with all the conditions and requirements indicated therein.

ISSUANCE OF NOTICE OF AWARD

Head of LGU signs and issues "Notice of Award" to winning bidder, indicating, among others, the requirements for contract award to be submitted by the winning project proponent. Within 7 cd upon receipt of requirements for award, the Head of LGU shall determine and notify the winning project proponent of its compliance of all conditions stated in the Notice of Award. If deadline is not met, and unless otherwise extended, the LGU could confiscate bid security.

The authorized signatory of the winning project proponent is required to sign the contract within 7 cd.

EXECUTION/APPROVAL OF CONTRACT

The authorized signatory of the LGU is required to sign the contract within 7 cd from receipt by the winning project proponent of the advice from the LGU that the former has complied with all conditions stated in the Notice of Award. The contract shall be effective upon signing thereof by the Head of LGU and unless another date is stipulated therein. An original signed copy of the contract shall be submitted to the Approving Body within 7 cd after signing.

Complies with conditions precedent for contract implementation (usually includes financial closure).

ISSUANCE OF NOTICE TO COMMENCE IMPLEMENTATION & CONTRACT IMPLEMENTATION

LGU shall issue the "Notice to Commence Implementation" of the project to the winning project proponent not later than 7 cd from the date of approval/signing of the contract by the Head of LGU. It complies with conditions precedent for contract implementation.