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Step by Step Process of Negotiated Procurement

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Step by Step Process of Negotiated Procurement

Post by bogart on Tue Nov 06, 2012 12:50 pm

Good day,

Our agency will resort to negotiated procurement due to 2 failed biddings (no suppliers participated). I am confused with the procedures for the negotiated procurement due to certain similarities with public bidding and lack of specifics in the IRR and manual.

Here are my queries:

1) It was stated in the manual (GPM for infra, goods, etc) that "the procedures for the conduct of public bidding should be observed". What specific procedures?

2) In the invitation of at least three suppliers, is sending a letter enough proof aside from the PHILGEPS posting?

3) How are the negotiations conducted? Does it require the presence of the suppliers or meetings? Can it be only done through black and white communications?

4) It is my understanding that the supplier, upon sending us the price offer, shall attach the eligibility requirements as required in public bidding.

5) can you please state (in utmost simplicity and in chronological order) the step by step process on how to conduct negotiated procurement due to 2 failed biddings. For example, 1) create resolution -> 2) post the opportunity -> 3) invite suppliers -> 4) require eligibility documents and price offer -> 5) evaluate and prepare contract and other related documents.

Thanks! cheers

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Re: Step by Step Process of Negotiated Procurement

Post by RDV @ GP3i on Tue Nov 06, 2012 6:08 pm

ralphmartinDOSTV wrote:Good day,

Our agency will resort to negotiated procurement due to 2 failed biddings (no suppliers participated). I am confused with the procedures for the negotiated procurement due to certain similarities with public bidding and lack of specifics in the IRR and manual.

Here are my queries:
Hopefully, I will be able to clarify the areas which confuse you.

ralphmartinDOSTV wrote:1) It was stated in the manual (GPM for infra, goods, etc) that "the procedures for the conduct of public bidding should be observed". What specific procedures?
The specific procedures for public bidding being referred to in the quoted provision are the procedures that you should follow from the time you receive the final offers of those whom you are negotiating with, from the opening of the bids/offers, bid evaluation, post-qualification, and award of contract. In other words, although it is negotiated procurement, the same procedure for public bidding, except for newspaper advertisement, has to be observed still by the procuring entity.

ralphmartinDOSTV wrote:2) In the invitation of at least three suppliers, is sending a letter enough proof aside from the PHILGEPS posting?
Yes, aside from PhilGEPS posting and posting in bulletin boards.

ralphmartinDOSTV wrote:3) How are the negotiations conducted? Does it require the presence of the suppliers or meetings? Can it be only done through black and white communications?
Negotiation has to be done in the presence of all those suppliers/contractors you are negotiating with. Just remember that negotiation process is done prior to their submission of final offers/bid. Yes, it can be done through black and white communications but you have to equally communicate to all.

ralphmartinDOSTV wrote:4) It is my understanding that the supplier, upon sending us the price offer, shall attach the eligibility requirements as required in public bidding.
Yes, if you are negotiating with a supplier which is not yet legally, technically and financially capable or eligible, which means that you do not have yet a file of the supplier's Class A documents.

ralphmartinDOSTV wrote:5) can you please state (in utmost simplicity and in chronological order) the step by step process on how to conduct negotiated procurement due to 2 failed biddings. For example, 1) create resolution -> 2) post the opportunity -> 3) invite suppliers -> 4) require eligibility documents and price offer -> 5) evaluate and prepare contract and other related documents.
The step-by-step process is as follows:
a) The BAC conducts mandatory review of the reasons behind the second failure of bidding.
b) Upon determination of the reason for the failure, the BAC may revise the terms, conditions, specifications, and/or the ABC for the project.
a) The BAC, through a BAC Resolution, recommends Negotiated Procurement under Sec. 53.1 of the IRR for approval of the HOPE, including any change in the terms/ABC.
c) Upon HOPE approval, the BAC shall send invitation to a "sufficient number" of suppliers "to ensure competition." Should the BAC considers 3 as a sufficient number, then the BAC will send invitation/request for proposal to those suppliers, aside from posting in the PhilGEPS and bulletin boards. The invitation may contain a date for initial negotiations with all those which responded to the invitation.
d) Negotiation is then done with those which responded. Areas for negotiation may still include the specifications, delivery schedule, etc.
e) After everything is clarified during the negotiation stage, the BAC will now finally request submission of final offers from all those suppliers which remained after negotiation.
f) The BAC will open all proposals/offers on the date set for the opening.
g) The follow will then follow the public bidding procedure thereafter.

Thanks! cheers [/quote]
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Re: Step by Step Process of Negotiated Procurement

Post by bogart on Wed Nov 07, 2012 6:57 am

Thank you sir.

One more thing, during the opening of the proposals, is it a requirement that all suppliers be present during the opening of bids?

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Re: Step by Step Process of Negotiated Procurement

Post by regina avelino on Wed Nov 07, 2012 10:07 am

sir RDV, i have a clarification. Section 54.2 states that the BAC thour its secretariat, shall post the invitation OR request for submission of price quotation for shopping, Negotiated Procurement (2-failed biddings) and small value procurment of the IRR in the PhilGEPS........

I think, the PhilGEPS posting is not mandatory for negotiated procurement under 2 failed biddings if you have already sent invitation to suppliers. Please advise comment.

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Re: Step by Step Process of Negotiated Procurement

Post by RDV @ GP3i on Wed Nov 07, 2012 11:47 am

regina avelino wrote:sir RDV, i have a clarification. Section 54.2 states that the BAC thour its secretariat, shall post the invitation OR request for submission of price quotation for shopping, Negotiated Procurement (2-failed biddings) and small value procurment of the IRR in the PhilGEPS........

I think, the PhilGEPS posting is not mandatory for negotiated procurement under 2 failed biddings if you have already sent invitation to suppliers. Please advise comment.

Ms. Regina, the conjuction OR in Sec. 54.2 of the IRR is the choice/option on what is to be posted in the PhilGEPS, that is between an invitation (ITB) or RFQ. Therefore, whether it is ITB or RFQ, it has to be posted in the PhilGEPS, agency website, and conspicuous place.
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Re: Step by Step Process of Negotiated Procurement

Post by RDV @ GP3i on Wed Nov 07, 2012 11:50 am

ralphmartinDOSTV wrote:Thank you sir.

One more thing, during the opening of the proposals, is it a requirement that all suppliers be present during the opening of bids?

They date of opening is known to the suppliers, just like in public bidding, but their presence is also not mandatory.
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Re: Step by Step Process of Negotiated Procurement

Post by regina avelino on Wed Nov 07, 2012 12:30 pm

noted sir RDV for the clarificagtion. thanks.

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Re: Step by Step Process of Negotiated Procurement

Post by ajac on Sat Jan 18, 2014 8:52 am

How about in emergency cases sir? Can you please state also the procedural steps on how to conduct such mode of procurement? The situation is we are reconstructing a box culvert because the old culvert collapsed and there is no alternate route for commuters. The cost of the project is 150,000. What are the eligibility, technical and financial documentary requirements to be submitted by a bidder? Is it the same as in the public bidding? Am I correct that bid & performance security is omitted as one of the requirements? Do we still need to post on philgeps invitation or directly negotiate to prospective contractor? Please state also the timeline in conducting NP (emergency cases), can we do it 7 days or less just like in the process of shopping? Thanks!

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Re: Step by Step Process of Negotiated Procurement

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