As soon as the pre-qualification process is completed, the LGU through its PBAC may proceed to the preparation and issuance of tender or bid documents. The contents of said documents should include the following:
1. Instructions to bidders
2. Minimum design, performance standards and specifications, economic parameters
3. Draft contract
4. Bid form
5. Forms of bid and performance securities
6. Current applicable rules and regulations of the BSP
7. Requirements and timelines/milestones of concerned agencies in granting of franchise, if applicable
8. Other documents as may be deemed necessary by the LGU
It is the responsibility of the bidder to accurately complete the bid proposal, taking into consideration every requirement, provision and condition stated in the bid documents. The pre-bid conference is one venue in which bidders may clarify their concerns regarding the bid documents and procurement protocols. Although attendance of project proponents or bidders is not mandatory, their presence and participation in the pre-bid conference should be strongly encouraged. If further clarifications are needed, the LGU through its PBAC may also issue supplemental notices in response to concerns raised by bidders; these clarifications may be raised before or after the pre-bid conference.
The bidders are expected to prepare and submit their proposals following the two-envelope system. The first envelope labeled "Technical Proposal" should contain the following:
| Table 2-14: Contents of the Technical Proposal | ||||
| Contents | Particulars | |||
| Compliance statements | Contractual arrangement and term and scope of work Project technical specifications System features Implementation milestones Other technical parameters as stated in the tender documents | |||
| Operational feasibility of the project | Should indicate: Proposed organization Methods and procedures for the operation and maintenance of the project under bidding | |||
| Technical soundness/preliminary engineering design | Proposed project timeline | |||
| Preliminary environmental assessment | Should indicate: Probable adverse effects of the project on the environment Corresponding mitigating measures to be adopted | |||
| Project cost | Total cost of the project | |||
| Bid security | It should be noted that bid security in the form of cash, certified check, manager's check, letter of credit, bank draft/guarantee, surety bond callable on demand, or any combination of the foregoing must be in accordance with the following: | |||
|
|
| Required Bid Security | Project Cost |
|
| 2.0% of the project cost | < Php5B | |||
| 1.5% of the project cost or Php100M, whichever is higher | Php5Bto < Php10B | |||
| 1.0% of the project cost or PhP150M, whichever is higher | PhP10B and above | |||
| Gender-responsive social analysis | Should indicate: Probable gender risks and constraints Possible actions that can be taken to reduce disparity and enhance opportunities |
| ||
| Enhancements | May state other terms which the project proponent may offer to the government to make the proposals more attractive, such as, but not limited to: Provisions allowing government to share in revenues Less government guarantees Reduction in the level of government undertakings or support | |||
| Other documents (as may be required) | Should support the bidder's technical proposal | |||
Source: RA 6957, as amended by RA 7718 - IRR
The second envelope labeled "Financial Proposal" should contain the following:
| Table 2-15: Contents of the Financial Proposal | |
| Contents | Particulars |
| Compliance statements | Financial parameters stated in the tender documents, including: Liquidated damages (Section 12.3, RA 7718-IRR) Performance and warranty bonds (Sections 12.7 and 12.8, RA 7718-IRR) Insurance cover for the project Warranty period and procedures |
| Proposed project cost | Operation and maintenance cost Project financing scheme Sources of financing All other related costs |
| Financial bid | Should correspond to the parameters set by the LGU in accordance with Section 4.2 (h) of RA 7718 - IRR Section 7.1 of RA 7718-IRR requires that for BOT, BOO, CAO, DOT, ROT, ROO and other similar variants, the financial proposal should state the proposed user fees/tolls/rentals and other charges, and present worth of the proposed user fees/tolls/rentals and other charges over the fixed term based on the discounting rate and foreign exchange rate prescribed in the bidding documents (in relation to Section 4.3 of RA 7718-IRR) |
Source: RA 6957, as amended by RA 7718 - IRR
Late bids are not to be accepted, and must be returned unopened to the bidders.
During the opening of bids, the PBAC should first open only the first envelope containing the Technical Proposal. Bid screening at this level is based on the completeness, and a bid should be automatically rejected if all the required technical proposal documents are not present. In such a case, the second envelope of the rejected bid must be returned unopened to the proponent. Bid withdrawal or modification is allowed if it is done prior to bid opening and only upon written notice. If withdrawal or modification is done after the opening of the first envelope, the bid security of the proponent shall be forfeited.