NPM 059-2007

Requesting Entity: University of the Philippines Manila

Issues Concern: Clarification on Various Provisions of R.A. 9184 and its IRR-A



1. Whether it is permissible to award service contracts, such as security and janitorial services, to the highest rated responsive bid rather than to the lowest calculated responsive bid.

In the procurement of goods, the purpose of bid evaluation is to determine the Lowest Calculated Bid (Section 32.1 [Bid Evaluation for the Procurement of Goods and Infrastructure Projects], IRR-A). This is determined in two steps:

  1. The detailed evaluation of the financial component of the bids, to establish the correct calculated prices of the bids; and

  2. The ranking of the total bid prices as so calculated from the lowest to the highest. The bid with the lowest price shall be identified as the Lowest Calculated Bid. (Section 32.2, IRR-A)

Based on the forgoing, we regret to inform you that R.A. 9184 and its IRR-A do not allow the use of any point or grading system in the bid evaluation of security and janitorial services nor the award of janitorial or security contracts to the highest rated bid.

2. Whether the posting of Invitation to Apply for Eligibility and to Bid may be dispensed with for specific alternative modes of procurement such as limited source bidding and direct contracting.

The posting requirement under any of the alternative methods of procurement is required under R.A. 9184 and its IRR-A . This is in line with the principles of transparency, competitiveness and public monitoring of government procurement. Thus, increasing the number of prospective bidders that will participate is not the sole consideration of the posting requirements.

3. Whether lease contracts are considered under R.A. 9184 and its IRR-A.

The lease of construction and office equipment, including computers, communication and information technology equipment are subject to the same public bidding and to the processes prescribed under the IRR-A (Section 46, IRR-A).

As regards the lease of real estate, we wish to inform you that the GPPB in its Resolution No. 4-2007 dated 4 May 2007, which took effect last 14 August 2007, resolved to amend Section 53 of the IRR-A to include lease of privately owned real estate for official use as one of the instances when the procuring entity may enter into Negotiated Procurement.