Table 2-17: The Public Bidding Process under RA 7718 (Option 2)

Private Sector

Process Flow

LGU

PROJECT ID AND PREPARATION

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

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

Approving Body is given 30 cd to approve the project and the contract.

ADVERTISEMENT/ INVITATION TO PRE-QUALIFY AND BID

Upon approval of the project and the contract, the LGU PBAC publishes invitation to qualify and bid, once a week for 3 consecutive weeks (21 days), in 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. Said 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, 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.

Secures qualification forms and tender documents. Bidders prepare their qualification documents and bid proposal in about 90 to 120 cd.

-  projects costing less than Php300M - approximately 90 cd

-  projects costing above Php300M - approximately 120 cd

ISSUANCE OF REQUEST FOR PROPOSAL (RFP)/BID PREPARATION

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

Bidders submit their proposal in 3 envelopes:

1.  First envelope - the qualification documents;

2.  Second envelope - the technical proposal, including the bid security; and

3.  Third envelope - the financial proposal. 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

BID SUBMISSION AND EVALUATION

LGU PBAC evaluates the qualification documents within 15 cd from the date of opening of the qualification documents. Bidders shall be informed whether they are qualified or disqualified, and for the latter, the reasons for disqualification. Only qualified bidders shall be allowed to participate in the bid evaluation. The technical proposal shall be evaluated within 30 cd and the financial proposal within 15 cd from receipt of the documents. In case of an appeal, the Head of DILG unit concerned shall act on the appeal within 45 working days from receipt of appeal and upon filling of a non-refundable appeal fee.

APPROVAL OF CONTRACT AWARD

PBAC submits to the Head of LGU 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 the 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 from receipt of advice from the LGU that it has complied with all conditions stated in the Notice of Award.

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

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.