a. Simplification of pre-qualification through the use of eligibility check, and strengthening of post-qualification;

b. Use of the Lowest Calculated and Responsive Bid as the criterion of award in the case of procurement of goods, supplies, materials and related services, and civil works; and the Highest Rated and Responsive Bid for consulting services;

c. Use of the approved budget for the contract as the ceiling for the bid price and the award of the contract to strengthen fiscal discipline and promote transparency; and

d. Use of transparent, objective and non-discretionary criteria in undertaking eligibility check, evaluating bids, and determining the lowest calculated and responsive bid or highest rated and responsive bid through post-qualification and the presentation of these criteria in the bidding documents.

To avoid the existence of, or the perception of the existence of conflict of interest, the BAC chairperson and the official who will sign the ensuing contract for the NFA shall not be the same person.

a. Procurement of ICT projects and resources shall be governed either by the rules for the procurement of (i) goods, supplies, materials and related services; (ii) civil works; or (iii) consulting services, depending upon the following:
a.1. The procurement of ICT equipment only, in particular, hardware and/or software, inclusive of data communications, networking equipment and such other peripherals and auxiliary equipment necessary to put an information and communications system, as this term is defined in Section 3 (d) of Republic Act No. 8792 (R.A. 8792), otherwise known as the “Electronic Commerce Act,” into operational mode, shall be considered as procurement of goods, supplies, materials and related services.

a.2. The procurement of ICT projects involving the establishment of physical networks only shall be considered as procurement of civil works.

a.3. The procurement of ICT manpower resources only, including Information Technology (IT) personnel, as well as consultancy/technical services related to the planning, development, implementation and maintenance of information systems, software and/or training, shall be considered as procurement of consulting services.

a.4. In the case of the procurement of ICT projects or resources involving at least two (2) of the foregoing, the same shall be considered as either one for: (a) goods, supplies, materials and related services; (b) civil works; or (c) consulting services, depending on whichever component has the higher or highest cost.

b. At least one (1) member of the BAC or the TWG who shall be responsible for the ICT procurement shall be an IT professional.

c. The lease of common ICT equipment (personal computers, printers, scanners, including copiers) may be resorted to in order to save on the annual budget of the agency and take advantage of advances in information technology. However, the lease-rental of said equipment shall be subject to public bidding. As a guide, the prevailing assumption of lease rental contracts is a useful life for ICT equipment of at least three (3) years.

d. The NFA may seek the assistance of NCC in the preparation of the Information Systems Plan (ISP), which shall form part of the APMP.

a. The services of consultants may be engaged by the NFA for projects or related activities of such magnitude and/or scope as would require a level of expertise or attention beyond its optimum in-house capability and consistent with the Government’s policy not to compete with the private sector.
b. Consultants shall be hired on the basis of their proven expertise, experience, capability and integrity. Under certain conditions provided herein, cost may be included as a factor in the selection of consultants.
c. The services that may be provided by consultants can be divided into six (6) broad categories, namely: (1) Advisory and Review Services; (2) Pre-Investment or Feasibility Studies; (3) Design; (4) Construction Supervision; (5) Management and Related Services; and (6) Other Technical Services and Special Studies.

A detailed definition and description of these services are provided for in Annex C.


d. In order to manifest trust and confidence in and promote the development of Filipino consultancy, Filipino consultants shall be hired whenever the services required for the project are within the expertise and capability of Filipino consultants. However, in the event that the Filipino consultants do not have the sufficient expertise and capability to render the services required under the project, foreign consultants may be hired, provided that, in the interest of effecting technology transfer, foreign consultants shall be required to associate themselves with Filipino consultants.

e. In the hiring of foreign consultants, all pertinent laws and regulations of the Philippines shall be followed and the requirement for technology transfer shall be emphasized.

f. Joint ventures among Filipino consultants and among Filipino and foreign consultants may be allowed if such results in better quality of consultancy subject to pertinent laws. The joint venture shall be jointly and severally responsible for the obligations and the civil liabilities arising from the consulting services.

g. The required consulting services shall be categorized into purely local experts or joint foreign and local experts which shall be indicated in the Invitation to Apply for Eligibility and to Bid.

h. Consultants, as well as key staff working for the consulting entity who may be directly or indirectly associated with non-consulting firms that may have an interest in or bias towards the project concerned, shall limit their role to that of consultants and will disqualify themselves and their affiliates for bidding for products and services of the same project.

i. Consultants to be hired shall be accredited with an umbrella organization of consultants duly recognized by the government. The umbrella organization shall accredit its members on the types of services and fields of professions where the members are technically and financially qualified to offer their services. The umbrella organization shall prepare and certify a list of fields and expertise in such fields available with the names of the accredited local consultants which shall be updated annually or as often as necessary. The umbrella organization may submit its files of accredited consultants to the BAC of the agency in accordance with the form prescribed by the BAC which can serve as registration of the consultants under the provision of this SOP: Provided, however, That such accredited consultant shall comply with the eligibility requirements provided in this SOP. Such qualification statements, together with the list of accredited consultants prepared in accordance with this SOP, shall guide the BAC and government negotiators of foreign loans, grants and aids in determining the fields where Filipino consultants are already qualified and capable and where foreign consultants may not be required.

Chairperson (regular) - at least third ranking official of the agency or unit
Member (regular) - two (2) regular members.
For C.O. BAC - at least a fifth ranking permanent personnel.
For F.O. BAC - at least a third ranking permanent personnel in that office.

Member (provisional) - two (2) technical members preferably from the PMO or the end-user department/office, duly designated by the Administrator on a project to project basis.

a. The regular members of the BAC shall be designated for a fixed term of three (3) years on a staggered basis. To the extent possible, the technical, legal and finance areas of the agency shall each be represented in this fixed term group, which include the chairperson. In the field offices where there is no legal officer, the administrative officer may be the voting member who will be responsible for the legal issues of procurement.

b. Initially, the chairperson shall be appointed for a term of three (3) years, one member for two (2) years, and the other member for one (1) year. Redesignation may be allowed for one term. In case of resignation, retirement, separation, removal, leave for at least six (6) months or suspension for cause of the incumbent, the replacement shall serve for only the unexpired term.

c. At the option of the Administrator, one of the regular members may be designated as vice-chairperson to perform the duties of the chairperson in his absence.

d. A quorum of the BAC shall be composed of the Chairman or his designated alternate plus two (2) members of the BAC . The Chairman may call meetings at any time as required to expedite work presented to the committee. Decisions shall be made by a simple majority vote of members who are present and voting except the Chairman who shall cast his vote only in the case of a tie. The decisions of the BAC pertaining to the award of contract shall, however, be recommendatory and shall be subject to the final approval/authority of the Administrator or his duly authorized representative based on the approved NFA Specification of Authority.
e. To eliminate delay in the procurement process, all members of the BAC shall be on a “jury duty” type of assignment until the Notice of Award is issued by the Administrator. The term “jury duty” shall be understood to mean a state by which the members give utmost priority to BAC assignments over all other duties and responsibilities until the requirements for the said assignments at hand are completed.

f. The creation of the BACs and their composition shall be appointed by the Administrator duly covered by a Special Order.

g. In addition to integrity, procurement proficiency shall be a factor to consider in designating officials to the BAC as well as the head of the Secretariat. In turn, the BAC shall consider the same in their selection of the Technical Working Group (TWG) members.

• a duly recognized private sector association, chamber or organization in a discipline which is relevant to the contract to be bid, e.g.:
For civil works contract - constructor’s associations such as the Philippine Constructors Association (PCA), National Constructors Association of the Philippines, Inc. (NACAP) or an association duly recognized by the Construction Industry Authority of the Philippines (CIAP);
For goods, supplies, materials or relevant services contract - a specific relevant chamber-member of the Philippine Chamber of Commerce and Industry (PCCI); or
• a project-related professional organization accredited or duly recognized by the Professional Regulation Commission or the Supreme Court, such as the Philippine Institute of Civil Engineers (PICE) for civil works and related consulting services procurement, and the Philippine Institute of Certified Public Accountants (PICPA) for other types of contracts.
(ii) The other observer shall come from the end-user group or a non-government organization (NGO).

The BAC shall be supported by a Secretariat which shall also be designated by the Administrator or his duly authorized representative. A Secretariat shall also be formed in the field offices to support the local BAC that may be established thereat. The Secretariat shall be responsible for the following:

e. Take custody of procurement documents and be responsible for the sale and distribution of bidding documents to interested bidders;
f. Manage procurement processes for the BAC;

g. Monitor procurement activities and milestones for proper reporting to relevant agencies when required;

h. Consolidate PPMPs from various units of the agency to make them available for review as indicated in Section 4 of these IRR;

i. Make arrangements for the pre-procurement and pre-bid conferences and bid openings; and

j. Be the central channel of communications for the BAC with end users, PMOs, other units of the line agency, other government agencies, providers of goods, works and consulting services, and the general public.

The head of the Secretariat in the Central Office shall be at least a fifth ranking official, and in the field offices, at least a third ranking official. If such officials are not available, an official of the next lower rank may be designated as head of the Secretariat.

For each specific procurement, the BAC may create a Technical Working Group (TWG) from a pool of technical, financial and/or legal experts to assist in the eligibility screening and evaluation of bids. The members of the TWG shall also be on “jury duty” type of assignment. The TWG shall be responsible for the following among others:

a. preparation of design/specifications for highly technical supplies/materials and equipment whose specifications are outside the established standard specifications.
b. preparation of bid documents, evaluation procedures/guidelines including agency estimates subject to the approval of BAC Chairman.

c. undertakes postqualification activities such as: site inspection, plant visit, etc.

a. Ensure that the procurement is in accordance with the project and agency procurement management plans;

b. Determine the readiness of the procurement at hand, including, among other aspects, confirmation of the availability of right-of-way (ROW), the ownership of affected properties, availability of funds, and adherence of technical plans, specifications, and/or Terms of Reference (TOR), and adherence to general government and/or IFI procurement guidelines;

c. Review, modify and agree on the criteria for eligibility screening to ensure their fairness, reasonableness and that they are of the “pass/fail” type and are written in such manner;

d. Review, modify and agree on the criteria for the evaluation of bids/proposals to ensure their fairness, reasonableness and applicability to the procurement at hand;

e. Determine whether the evaluation method to be employed shall be of the type where all minor variations are quantified and expressed in monetary terms as penalties/bonuses to the bid price; and
f. Reiterate, agree on measures to ensure, and emphasize the importance of, confidentiality during the bid evaluation process, as well as the applicable sanctions, if any.

a. The Invitation to Apply for Eligibility and to Bid (Annex D) is a formal written invitation by the government signifying its intention to have a certain government project submitted to competitive bidding. The Invitation to Apply for Eligibility and to Bid shall provide prospective bidders the following information, among others:
a.1. The name, address, telephone number, facsimile number, e-mail and website addresses of the concerned agency, as well as its designated contact person;

a.2. For the procurement of:

i. Goods, the name of the contract to be bid and a brief description of the goods to be procured;

ii. Civil works, the name and location of the contract to be bid, the project background and other relevant information regarding the proposed contract works, including a brief description of the type, size, major items, and other important or relevant features of the works; and

iii. Consulting services, the name of the contract to be bid, a general description of the project and other important or relevant information;

a.3. The criteria to be used by the agency in the following: (i) eligibility check of prospective bidders; (ii) examination and evaluation of bids; and (iii) postqualification; which shall be on a non-discretionary “pass/fail” basis;
a.4. The approved budget for the contract and the source of funding;

a.5. The period of availability of the bidding documents, the place where the bidding documents may be secured and, the price of the bidding documents;

a.6. The date, time and place of the deadline for the submission and receipt of the eligibility requirements, the pre-bid conference, the submission and receipt of bids, and the opening of bids; and
a.5. The contract duration or delivery schedule.
b. The Invitation to Apply for Eligibility and to Bid shall be advertised in the following manner:
b.1. advertised at least twice within a minimum period of seven (7) calendar days between publications, in at least two (2) newspapers of general nationwide circulation which have been regularly published for at least two (2) years before the date of issue of the advertisement;

b.2. posted continuously in the website of the NFA and the EPS during the same period as above ; and

b.3. posted at any conspicuous place reserved for this purpose in the premises of the concerned NFA Office, as certified by the Head of the concerned BAC Secretariat’ and

b.4. With the following periods between the last day of the period for advertising/posting and the opening of bids:

In case of simple or repetitive or standardized jobs where time is of the essence, the above term of issuance may be reduced to not less than fifty percent (50%) as may be approved by the Administrator.

iii. For consulting services, a maximum period of seventy-five (75) calendar days.

b.5. For contracts to be bid with an ABC costing two million pesos (P2,000,000.00) and below for the procurement of goods, five million pesos (P5,000,000.00) and below for the procurement of civil works, and for projects/contracts for consulting services with an ABC costing five hundred thousand pesos (P500,000.00) and below and/or those whose duration is four (4) months or less, the Invitation to Apply for Eligibility and to Bid shall be posted at least in the NFA website, the EPS, and posted at any conspicuous place reserved for this purpose in the premises of the concerned NFA Office, as certified by the head of the BAC Secretariat concerned, during the same period as above.

b.6. For alternative methods of procurement advertisement in a newspaper as required in this Section may be dispensed with: Provided, however, that posting shall be made in the NFA website, in the EPS, and posted at any conspicuous place reserved for this purpose in the premises of the concerned NFA Office, as certified by the head of the BAC Secretariat concerned, during the same period as above.

b.7. A copy of the Invitation to Apply for Eligibility and to Bid as advertised shall be forwarded to the Management Services Department (MSD) for posting at the NFA website.

b.8. Posting of the Invitation to Apply for Eligibility and to Bid at the EPS shall be undertaken by the NFA personnel designated to transact and operate the EPS from the agency terminals.

b.9. In areas where the internet is not available, the Invitation to Apply for Eligibility and to Bid shall be submitted by the concerned NFA Regional Office to the GSD-Purchasing Section for posting at the NFA website and the EPS.

a. Prospective Bidders shall be given ample time to examine the bidding documents and to prepare their respective bids. To provide ample time, the concerned BAC shall make available the bid documents from the time the Invitation to Apply for Eligibility and to Bid is first advertised. The BAC shall issue the bidding documents upon payment by the prospective bidder of the corresponding fee to the designated NFA cashier/collecting officer. For procurement of civil works and consulting services, however, the bidding documents shall be made available only to eligible bidders.

i. The terms of reference for the procurement (TOR) including, among others, the Instructions to Bidders and, if applicable, the required form and amount of Bid Security;

ii. Contract Plans and Specifications, if applicable;

iii. Draft Contract Form, including the Terms and Conditions and form and amount of the Performance Security,

iv. Bid Form consisting of: (a) the technical proposal form, including the required technical information and other supporting documents; and (b) the financial proposal form, including Bill of Quantities against which bid prices are to be offered by the bidder, if applicable;

v. For the procurement of consulting services: (a) information required to be submitted by the consultants in their proposals, such as experience and capability of the consultants and their personnel, proposed methodology and discussion of activities to be performed, work plan and schedule of activities including estimates of man-months and Project Evaluation Review Technique/Critical Path Method (PERT/CPM) diagram or equivalent, personnel to be assigned to the job (manning schedule) with their curriculum vitae and responsibilities in the undertaking and organizational structure, and current work commitments and assignments of key personnel; (b) supplemental information to the consultants to guide them in preparing their proposals, such as items/information on which primary emphasis shall be placed in the evaluations of proposals, estimated man-months, data requirements and availability, and information on policies related to the job; and (c) the criteria with its relative weights and the system of rating for short listing and for evaluating consultants; and

i. the Instructions to Bidders;

ii. the objectives, scope and expected outputs and/or results of the proposed contract;

iii. the expected contract duration, the estimated quantity in the case of procurement of goods, delivery schedule and/or time frame;

iv. the obligations, duties and/or functions of the winning bidder; and

v. the minimum requirements of bidders, such as a track record for a minimum period of three (3) years or less in special cases, as may be determined by the BAC.
The TOR may be supplemented by additional information, such as summary of data, facilities, and/or services, where applicable, which will be provided by the NFA to the prospective bidders. The TOR, as may be amended, shall subsequently form an integral part of the contract.

d.1. Requests for clarification(s) on any part of the bidding documents or for an interpretation must be in writing and submitted to the BAC at least ten (10) calendar days before the deadline set for the submission and receipt of bids. The BAC shall respond to the said request by issuing a Supplemental/Bid Bulletin, duly signed by the BAC chairman, to be made available to all those who have properly secured the bidding documents from the agency, at least seven (7) calendar days before the deadline for the submission and receipt of bids. It shall be the responsibility of all those who have properly secured the bidding documents to inquire and secure Supplemental/Bid Bulletins that may be issued by the BAC.

d.2. Supplemental/Bid Bulletins may be issued upon the BAC’s initiative for purposes of clarifying or modifying any provision of the bidding documents not later than seven (7) calendar days before the deadline for the submission and receipt of bids. Any modification to the bidding documents shall be identified as an amendment.

d.3. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted on the NFA website and on the EPS.

a. Bidders should carefully study the specifications, terms and conditions advertised in the bid and ask for clarification, if necessary, so as to preclude erroneous tenders. A prospective or eligible bidder shall be responsible for:

i. Having taken steps to carefully examine all of the bidding documents;

ii. Having acknowledged all conditions, local or otherwise, affecting the implementation of the contract;

iii. Having made an estimate of the facilities available and needed for the contract to be bid, if any; and

iv. Having complied with his responsibility as provided for under Section III.5.2.d.1. of this SOP.

b. Failure to observe any of the above responsibilities shall be at the risk of the prospective bidder or eligible bidder concerned. For this purpose, a bidder shall execute a sworn statement attesting to the foregoing responsibilities, to be submitted by the bidder as an annex to its technical proposal.

c. It shall be the sole responsibility of the prospective bidder to determine and to satisfy itself by such means as it considers necessary or desirable as to all matters pertaining to the contract to be bid, including: (i) the location and the nature of the contract, project or work; (ii) climactic conditions; (iii) transportation facilities; (iv) for the procurement of civil works, nature and condition of the terrain, geological conditions at the site, communication facilities, requirements, location and availability of construction aggregates and other materials, labor, water, electric power and access roads; and (v) other factors that may affect the cost, duration and execution or implementation of the contract, project or work.

d. In the case of procurement of civil works, the bidder, by the act of submitting its bid, shall be deemed to have inspected the site and determined the general characteristics of the contract works and the conditions indicated above. The BAC shall require a certificate of such site inspection from the eligible bidder.
e. The NFA shall not assume any responsibility regarding erroneous interpretations or conclusions by the prospective or eligible bidder out of the data furnished by the agency.

f. Before submitting their bids, the bidders are deemed to have become familiar with all existing laws, decrees, ordinances, acts and regulations of the Philippines which may affect the contract in any way. However, in cases where the cost of the awarded contract is affected by any applicable new laws, ordinances, regulations or other acts of Government promulgated after the date of bidding, a contract price adjustment shall be made or appropriate relief shall be applied on a no loss-no gain basis, provided such is not covered by the contract provisions on price adjustment.

a. Pre-bid conferences shall be conducted to clarify and/or explain any of the requirements, terms, conditions and specifications stipulated in the bidding documents. The pre-bid conference shall discuss, among other things, the technical and financial components of the contract to be bid, and, for the procurement of goods, the eligibility requirements.

b. For contracts to be bid amounting to more than one million pesos (P1,000,000) the BAC shall conduct at least one (1) pre-bid conference.

c. The pre-bid conference shall be held at least fifteen (15) calendar days before the deadline for the submission and receipt of bids. The minutes of the pre-bid conference shall be recorded and made available to all participants at least ten (10) calendar days before the deadline for bid submission.

d. Any statement at the pre-bid conference shall not modify the terms of the bid documents unless such statement is specifically identified in writing as an amendment thereto and issued as a Supplemental Bulletin sent by mail, by hand or electronically to all parties who have secured the bid/tender documents. The minutes of the conference(s) shall be recorded and made available to all participants.
e. The bidders shall bear all costs in the preparation of their bids and the NFA shall in no case be responsible or liable for these costs, regardless of the outcome of the bidding process.

a. For the procurement of civil works and consulting services, the interested party shall submit a written Letter of Intent (LOI), which must be received by the BAC not later than seven (7) calendar days after the last day of the period for advertising and/or posting.

b. In the case of procurement of civil works, a contractor that is duly registered and that maintains its registration current and updated shall submit its Letter of Intent for the contract to be bid together with its eligibility requirements and/or statements: Provided, however, That its registration is proper and relevant for the particular type of contract to be bid: Provided, further, That, notwithstanding the provisions on eligibility requirements, a contractor that is duly registered and that maintains its registration current and updated in an agency’s electronic registry that is already existing and that allows electronic submission and/or recording/entry of eligibility requirements simultaneously with registration, may simply submit its LOI for the contract to be bid, as long as its registration is proper and relevant for the particular contract to be bid: Provided, finally, That, in the latter case, eligibility of the contractor to participate in the bidding shall still be determined by the BAC through the conduct of an eligibility check, electronically or otherwise.
c. In the case of procurement of consulting services, for the reason that the eligibility requirements are submitted by a consultant upon registration a consultant that is duly registered and that maintains its registration current and updated in an agency’s registry, may simply submit its LOI for the contract to be bid: Provided, however, That its registration is proper and relevant for the particular contract to be bid: Provided, further, That the eligibility of the consultant to participate in the bidding shall still be determined by the BAC through the conduct of an eligibility check.

a. To facilitate eligibility checking, the BAC shall maintain a registry of suppliers and contractors for non-common goods and/or for civil works, as may be applicable. A supplier or contractor who wishes to participate in a public bidding for non-common goods and/or civil works should be registered by submitting the following basic requirements to the NFA, which should be maintained current and updated at least once a year, or more frequently when needed, by the said supplier or contractor:

i. Department of Trade and Industry (DTI) business name registration or Securities and Exchange Commission (SEC) registration certificate, whichever may be appropriate under existing laws of the Philippines;
ii. Mayor’s permit/municipal license;

iii. Taxpayer’s Identification Number;

iv. Statement of the prospective bidder that it is not “blacklisted” or barred from bidding by any government agency, office or corporation, including, in the case of procurement of civil works, non-inclusion in the “blacklist” of contractors issued by the Construction Industry Authority of the Philippines; and

The prospective bidder or its duly authorized representative shall certify under oath that each of the documents submitted is an original copy or a true and faithful reproduction or copy of the original.
b. The BAC shall issue a certification of official registration to duly registered suppliers and contractors after verification of proper submission of all registration requirements of the supplier or contractor concerned.
c. Registration shall be effective for one (1) year and may be renewed, provided that the supplier, contractor or consultant concerned maintains its registration current and updated at least once a year, or more frequently, when needed.
d. All suppliers, contractors and consultants registered with the NFA shall be entered into the EPS electronic registry.

a. Eligibility Criteria

i. The following manufacturers, suppliers and/or distributors shall be eligible to participate in the bidding for the supply of goods:

* Duly licensed Filipino citizens/sole proprietorships;
* Partnerships duly organized under the laws of the Philippines and of which at least sixty percent (60%) of the interest belongs to citizens of the Philippines;

* Corporations duly organized under the laws of the Philippines, and of which at least sixty percent (60%) of the outstanding capital stock belongs to citizens of the Philippines;

* Manufacturers, suppliers and/or distributors forming themselves into a joint venture, i.e., a group of two (2) or more manufacturers, suppliers and/or distributors that intend to be jointly and severally responsible or liable for a particular contract, provided that Filipino ownership thereof shall be at least sixty percent (60%); or

* Cooperatives duly registered with the Cooperatives Development Authority (CDA).

ii. The value of the prospective bidder’s largest single contract, adjusted to current prices, completed within the period specified in the Invitation to Apply for Eligibility and to Bid, and similar to the contract to be bid, must be at least fifty percent (50%) of the approved budget for the contract to be bid.

iii. The prospective bidder’s Net Financial Contracting Capacity (NFCC), based on his net working capital (i.e., current assets less current liabilities), must be at least equal to the approved budget for the contract to be bid, calculated as follows:

NFCC = (Current assets minus current liabilities) (K) minus the value of all outstanding works or projects under ongoing contracts, including awarded contracts yet to be started.

Where:

K = 10 for a contract duration of one year or less, 15 for a contract duration of more than one year up to two years, and 20 for a contract duration of more than two years.

iv. As an exception to the above provisions on eligibility, for procurements under the Armed Forces of the Philippines (AFP) Modernization Program, only offers from suppliers who are manufacturers themselves shall be eligible to bid, pursuant to the pertinent provisions of Republic Act No. 7898 (R.A. 7898).

i. The following shall be eligible to participate in the bidding for civil works:

* Duly licensed Filipino citizens/sole proprietorships;
* Partnerships duly organized under the laws of the Philippines and of which at least seventy-five percent (75%) of the interest belongs to citizens of the Philippines;

* Corporations duly organized under the laws of the Philippines, and of which at least seventy-five percent (75%) of the outstanding capital stock belongs to citizens of the Philippines;

* Contractors forming themselves into a joint venture, i.e., a group of two (2) or more contractors that intend to be jointly and severally responsible or liable for a particular contract, provided that they shall, for purposes of bidding:

- Comply with Letter of Instruction No. 630 (LOI 630);
- Be currently and properly licensed by the Philippine Contractors Accreditation Board (PCAB);

- Comply with the provisions of Republic Act No. 4566 (R.A. 4566) and its Implementing Rules and Regulations; and

- Filipino ownership of the joint venture concerned shall be at least seventy-five percent (75%): Provided, however, That joint ventures in which Filipino ownership is less than seventy-five percent (75%) may be eligible where the structures to be built require the application of techniques and/or technologies which are not adequately possessed by an entity meeting the seventy-five percent (75%) Filipino ownership requirement.

* Cooperatives duly registered with the Cooperatives Development Authority (CDA).

ii. The value of the prospective bidder’s largest single contract, adjusted to current prices, completed within the period specified in the Invitation to Apply for Eligibility and to Bid, and similar to the contract to be bid, must be at least fifty percent (50%) of the approved budget for the contract to be bid.
iii. The Contractor’s Performance Evaluation System (CPES) rating and/or certificate of completion and owner’s acceptance of the contract must be satisfactory.
iv. The prospective bidder’s Net Financial Contracting Capacity (NFCC), based on his net working capital (i.e., current assets less current liabilities), must be at least equal to the approved budget for the contract to be bid, calculated as follows:

NFCC = [(Current assets minus current liabilities) multiplied by (K)] minus the value of all outstanding works or projects under ongoing contracts, including awarded contracts yet to be started.

Where:

K = 10 for a contract duration of one year or less, 15 for a contract duration of more than one year up to two years, and 20 for a contract duration of more than two years.

a.3. Only an eligible bidder as determined by the BAC may participate in the bidding and subsequently be awarded the contract being bid out if its bid is found to be responsive in accordance with this SOP.

b. The BAC shall determine the eligibility of the prospective bidders based on the submission of the following documents, utilizing the forms prepared by the BAC and using the eligibility criteria stated in the previous section.

i. BAC certification of the official registration of the prospective bidder, referred to in Section III.5.6.b. of this SOP.

* Valid joint venture agreement, in case of a joint venture.
* Letter authorizing the BAC or its duly authorized representative/s to verify any or all of the documents submitted for the eligibility check.

* Statement of the prospective bidder that it is not “blacklisted” or barred from bidding by any government agency, office or corporation, including, in the case of procurement of civil works, non-inclusion in the “blacklist” of contractors issued by the Construction Industry Authority of the Philippines.

* Statement of the prospective bidder of all its completed contracts in the last three (3) calendar years or more. The statement shall state for each contract whether said contract is:

- Completed: in the last three (3) calendar years or more, as prescribed by the agency in the Invitation to Apply for Eligibility and to Bid; and
- Similar in nature and complexity to the contract to be bid. The term “Similar” shall be defined by the concerned agency in the in the Invitation to Apply for Eligibility and to Bid. The statement shall include, for each contract, the following:

For the procurement of goods:

g. specification whether prospective bidder is a manufacturer, supplier or distributor; or

For the procurement of civil works:

a. the name of the contract;
b. date of award of the contract;
c. contract duration;
d. owner’s name and address;
e. nature of work;
f. contractor’s role (whether sole contractor, sub-contractor, or partner in a joint venture);
g. total contract value at completion;
h. date of completion; and
i. the statement shall be supported by the CPES rating sheets, and/or certificates of completion and owner’s acceptance.

* In the case of procurement of civil works, the prospective bidder’s statement of:

- All his ongoing government and private construction contracts, including contracts awarded but not yet started. This shall include, for each contract, the name of the contract, date of award of contract, owner’s name and address, nature of work, contractor’s role, total contract value at award, percentages of planned and actual accomplishments, value of outstanding works, and estimated completion time. The statement shall be supported by the notices of award and/or notices to proceed issued by the owners;
- Availability of the prospective bidder’s key personnel, such as project managers, project engineers, materials engineers and foremen, that may be used for construction contracts; and

- Availability of equipment that he owns, has under lease, and/or has under purchase agreements, that may be used for construction contracts.

* The prospective bidder’s audited financial statements, stamped “received” by the BIR or its duly accredited and authorized institutions, for the immediately preceding calendar year, showing, among others, the prospective bidder’s total and current assets and liabilities.
c. The prospective bidder or its duly authorized representative shall certify under oath that each of the documents submitted in satisfaction of the eligibility requirements is an original copy or a true and faithful reproduction or copy of the original.
d. For special case of procurements where foreign entities may participate, the above requirements for eligibility may be substituted by the appropriate equivalent documents issued by the foreign prospective bidder’s country, which documents must be duly acknowledged or authenticated by the Philippine Consulate therein.
e. The eligibility requirements or statements shall be submitted to the BAC in the form prescribed in the Instructions to Bidders, in a sealed eligibility envelope duly marked as such. The eligibility envelopes of prospective bidders shall be opened on the date of opening of eligibility and bid envelopes as indicated in the Invitation to Apply for Eligibility and to Bid.
f. The BAC shall determine if each prospective bidder is eligible to participate in the bidding by examining the completeness of each prospective bidder’s eligibility requirements or statements against a checklist of requirements, using a non-discretionary “pass/fail” criteria, as stated in the Invitation to Apply for Eligibility and to Bid, and shall be determined as either “eligible” or “ineligible.” If a prospective bidder is rated “passed” for all the eligibility requirements, it shall be considered eligible to participate in the bidding, and the BAC shall mark the set of eligibility documents of the prospective bidder concerned as “eligible.” If a prospective bidder is rated “failed” in any of the eligibility requirements, it shall be considered ineligible to participate in the bidding, and the BAC shall mark the set of eligibility documents of the prospective bidder concerned as “ineligible.”
g. For the procurement of goods wherein submission and opening of eligibility envelopes shall be done simultaneously with the bids/tenders, the bid envelopes of ineligible bidders shall be returned immediately to the bidder unopened. Only the bid envelopes of eligible bidders shall be included in the evaluation of bids.
h. For procurement of civil works, the BAC shall inform, in writing, the concerned bidder that it has been found eligible to participate in the bidding. On the other hand, the BAC shall inform an ineligible bidder, in writing, that it has been found ineligible to participate in the bidding, and the grounds for its ineligibility. Those found ineligible have seven (7) calendar days upon receipt of notice within which to request for a reconsideration from the BAC: Provided, however, that the request for reconsideration shall not be granted if it is established that the finding of ineligibility is due to the fault of the prospective bidder concerned: Provided, further, that the BAC shall decide on the request for reconsideration within seven (7) calendar days from receipt thereof. The BAC may request a prospective bidder to clarify its eligibility documents, if it is deemed necessary. The BAC shall not be allowed to receive, hold and/or open the bids of ineligible bidders.
i. Notwithstanding the eligibility of a bidder, the NFA reserves the right to review the qualifications of a bidder at any stage of the procurement process. Should such review uncover any misrepresentation made in the eligibility requirements, statements or documents, or any changes in the situation of the bidder which will materially downgrade the substance of such requirements, statements or documents so that it fails the preset eligibility criteria, the NFA shall consider the said bidder as ineligible and shall disqualify it from submitting a bid or from obtaining an award or contract.
j. The entire process of eligibility check for the procurement of civil works shall not exceed fifteen (15) calendar days.

a. A natural or juridical person, qualified by appropriate education, training and relevant experience to render any or all of the types and fields of consulting services as defined in this SOP, shall be considered as a “Consultant,” subject to the requirements for eligibility check and postqualification. A consultant may either be:

a.1. A Filipino Consultant. A Filipino consultant may be an individual, sole proprietorship, partnership or a corporation satisfying the above definition of a consultant and the following requirements:

• The owner of the sole proprietorship must be a citizen of the Philippines;
  
• The sole proprietorship firm must be registered and authorized by the Bureau of Domestic Trade; and
  
• When the types and fields of consulting services in which the sole proprietorship wishes to engage involve professions regulated by laws of the Philippines, the owner and key staff of the sole proprietorship must be registered professionals authorized by the appropriate regulatory body to practice those professions or allied professions.

• At least sixty (60%) of the partnership’s interest must be owned by citizens of the Philippines;
• The partnership firm must be registered with and authorized by the SEC to engage in consulting services; and
• When the types and fields of consulting services in which the partnership firm wishes to engage involve professions regulated by laws of the Philippines, all the partners of the partnership firm shall be registered professionals authorized by the appropriate regulatory body to practice those professions or allied professions.
iv. Corporation

• At least sixty percent (60%) of both the subscribed and paid-up capital stock must be owned by citizens of the Philippines;
• The corporation must be registered with and authorized by the SEC to engage in consulting services; and
• When the types and fields of consulting services in which the corporation wishes to engage involve the practice of professions regulated by law, the following conditions shall be observed:
 One hundred percent (100%) of both the subscribed and paid-up capital must be owned by registered professionals authorized by the appropriate regulatory body to practice those professions or allied professions; and

 The principal officers of the corporation must be registered professionals authorized by the appropriate regulatory body to practice those professions or allied professions.

With respect to a consulting entity (i.e., sole proprietorship, partnership or corporation) wishing to engage in multi-disciplinary undertakings not all of which involve the practice of professions regulated by the laws of the Philippines, the owner and key staff, partners or principal officers of the consulting entity, as the case may be, may include those from other professions not regulated by law but related to the types of consulting services as defined herein: Provided, however, That the latter shall not exceed forty percent (40%) of the requirements herein provided for situations when the types and fields of consulting services in which the entity wishes to engage were to involve professions regulated by the laws of the Philippines.

a.2. A Foreign Consultant. A foreign consultant may be an individual, sole proprietorship, partnership or corporation satisfying the definition of a consultant, but not meeting the citizenship, ownership, interest and/or registration/authorization requirements for a Filipino consultant as provided in this SOP. To qualify for hiring for consulting services, the foreign consultant must satisfy the following minimum requirements:

i. The foreign consultant must be registered with the SEC and/or any agency authorized by the laws of the Philippines; and

ii. When the types and fields of consulting services in which the foreign consultant wishes to engage involve the practice of regulated professions, the foreign consultant must be authorized by the appropriate Philippine Government professional regulatory body to engage in consulting services involving the practice of those professions and allied professions. The limits of such authority shall be strictly observed.

b.1. The BAC shall maintain a register of consultants, containing information on their capabilities and experience to undertake consulting services for the agency concerned. A consultant who wishes to participate in a public bidding for consulting services shall be registered by submitting the following basic requirements to the NFA, which shall be maintained current and updated at least once a year, or more frequently when needed, by the said consultant:

• Department of Trade and Industry (DTI) business name registration or Securities and Exchange Commission (SEC) registration certificate, whichever may be appropriate under existing laws of the Philippines, if applicable;
• Mayor’s permit/municipal license, if applicable; and
• Bureau of Internal Revenue (BIR) tax registration.
ii. Valid joint venture agreement, in case of a joint venture.

iii. Letter authorizing the head of the agency of his duly authorized representative/s to verify any or all of the documents submitted for the eligibility check.

iv. Statement of the consultant that he is not “blacklisted” or barred from bidding by any government agency, office or corporation.

v. Statement of the consultant of all his completed contracts in the last three (3) calendar years or more, and all his ongoing government and private contracts, including contracts awarded but not yet started . The statement shall include, for each contract, the following:

• the name and location of the contract/project;
• date of the contract;
• type of consulting service;
• amount of contract;
• contract duration; and
  • certificate of satisfactory completion issued by the client, in the case of a completed contract.
  vi. The types and number of equipment that the consultant owns, has under lease, and/or has under purchase agreements.

  vii. The consultant’s audited financial statements, stamped “received” by the BIR or its duly accredited and authorized institutions, for at least the last three (3) calendar years, showing, among others, the consultant’s total and current assets and liabilities.

  viii. If the consultant is a juridical entity, the consultant’s statement:

  • Of the kinds and number of its ownership and key staff, partners or principal officers, as the case may be, as well as their respective curriculum vitae;
  • That, when the types and fields of consulting services in which the entity wishes to engage involve professions regulated by the laws of the Philippines, the owner and key staff, partners or principal officers, as the case may be, are registered professionals authorized by the appropriate regulatory body to practice those professions or allied professions, and
  • On the prospective bidder’s technical competence, experience and staff capabilities.
  ix. If the consultant is an individual, his statement, with supporting documents, that:
  • He is a citizen of the Philippines or otherwise duly authorized and/or registered with the SEC and/or any agency authorized by law; and
  • When the types and fields of consulting services in which he wishes to engage involve professions regulated by the laws of the Philippines, he is a registered professional authorized by the appropriate regulatory body to practice those professions or allied professions.
b.2. The consultant or his duly authorized representative shall certify under oath that each of the documents submitted in satisfaction of the eligibility requirements is an original copy or a true and faithful reproduction or copy of the original.

c.1. Subject to the short listing of consultants as provided in this SOP, the determination of eligibility of consultants shall be based on the submission of the above documents to the BAC, utilizing the prescribed forms. Only an eligible consultant as determined by the BAC may participate in the bidding and subsequently be awarded the contract being bid out if his bid is found to be responsive in accordance with this SOP.

c.2. The BAC shall determine if each consultant is eligible to participate in a bidding by examining each consultant’s eligibility requirements or statements against a checklist of requirements, using a non-discretionary “pass/fail” criteria, as stated in the Invitation to Apply for Eligibility and to Bid and the Instructions to Bidders, and shall be determined as either “eligible” or “ineligible.” If a consultant is rated “passed” for all the eligibility requirements, he shall be considered eligible to participate in a bidding, and the BAC shall mark the set of eligibility documents of the consultant concerned as “eligible.” If a consultant is rated “failed” in any of the eligibility requirements, he shall be considered ineligible to participate in a bidding, and the BAC shall mark the set of eligibility documents of the consultant concerned as “ineligible.” In either case, the markings shall be countersigned by the BAC chairperson or duly designated authority.

c.3. The BAC shall inform an eligible consultant that he has been found eligible, subject to the short listing of consultants as provided in this SOP, and that his registration has been approved. On the other hand, the BAC shall inform an ineligible consultant that he has been found ineligible, and the grounds for his ineligibility. Those found ineligible have seven (7) calendar days upon receipt of notice within which to request for a reconsideration from the BAC: Provided, however, That the request for reconsideration shall not be granted if it is established that the finding of ineligibility is due to the fault of the prospective bidder concerned: Provided, further, That the BAC shall decide on the request for reconsideration within seven (7) calendar days from receipt thereof. The BAC may request a prospective bidder to clarify its eligibility documents, if it is deemed necessary. The BAC shall not be allowed to receive, hold and/or open the bids of ineligible bidders.

c.4. Notwithstanding the eligibility of a consultant and/or inclusion in the short list of consultants, the NFA reserves the right to review the qualifications of a consultant before any actual bidding is made. Should such review uncover any misrepresentation made in the eligibility requirements, statements or documents, or any changes in the situation of the consultant which will materially downgrade the substance of such requirements, statements or documents so that the consultant fails the preset eligibility criteria, the NFA shall consider the said consultant as ineligible and shall disqualify him from submitting a bid or from obtaining an award or contract.

d.1. With respect to a particular contract for consulting services to be bid, the concerned BAC shall only consider for short listing those consultants whose past contracts, as stated in the eligibility documents submitted for registration, are similar in nature and complexity to the contract to be bid, based on the Invitation to Apply for Eligibility and to Bid.

d.2. The BAC shall draw up the short list of consultants from those who have been determined as eligible and duly registered, and who have submitted their Letter of Intent, both in accordance with the provisions of this SOP. The short list shall consist of three (3) to seven (7) consultants, with five (5) as the preferable number. If there is only one (1) eligible consultant, the agency shall consider the same under the circumstance specified in Section III.5.15. of this SOP.

d.3. The BAC shall specify in the Invitation to Apply for Eligibility and to Bid the set of criteria and rating system for short listing of consultants to be used for the particular contract to be bid, which shall consider the following, among others:

i. Applicable experience of the consultant and associates in case of joint ventures, considering both the overall experiences of the firm and the individual experiences of the principal and key staff including the times when employed by other consultants;

ii. Qualification of personnel who may be assigned to the job vis-à-vis extent and complexity of the undertaking; and

iii. Current workload relative to capacity.

d.4. The BAC shall recommend the short list of consultants to the NFA Administrator for consideration and approval. The entire process of eligibility check and short listing shall not exceed 30 calendar days.

a. Eligible bidders shall submit their bids in the prescribed Bid Form, including its annexes, as specified in the bidding documents on the specified deadline in two (2) separate sealed bid envelopes. The first bid envelope shall contain the technical component of the bid, and the second bid envelope shall contain the financial component of the bid. Both envelopes shall bear the name of the contract to be bid and the name of the bidder in capital letters, addressed to the BAC of the agency concerned. The bidder shall mark the two envelopes: “Do not open before (date and time of opening of bids).”

b. The first envelope shall contain the following technical information/documents, at the least:

b.1. For the procurement of goods:
i. The Bid Security as to form, amount and validity period;

ii. Authority of the signatory;

i. Production/delivery schedule;

ii. Person-power requirements;

iii. After-sales service/parts;

iv. Technical specifications;

v. Commitment from the supplier’s bank to extend to it a credit line if awarded the contract to be bid, or a cash deposit certificate, in an amount not lower than that set by the agency in the Instructions to Bidders, which shall be at least equal to the operating cash flow requirement of the contract to be bid;

vi. Certificate from the bidder under oath of its compliance with existing labor laws and standards, in the case of procurement of services; and

vii. Other documents/materials as stated in the Instructions to Bidders.

b.2. For the procurement of civil works:
i. Bid Security as to form, amount and validity period;

ii. Authority of the signing official;

iii. Construction schedule and S-curve;

iv. Person-power schedule;

v. Construction methods;

vi. Organizational chart for the contract to be bid

vii. List of contractor’s personnel (viz., Project Manager, Project Engineers, Materials Engineers, and Foremen), to be assigned to the contract to be bid, with their complete qualification and experience data;

viii. List of contractor’s equipment units, which are owned, leased, and/or under purchase agreements, supported by duly executed contracts therefore, and intended for use in the contract to be bid;

ix. Equipment utilization schedule;

x. Certificate of site inspection;

xi. Certification that the detailed estimates, cash flow by quarter, and payments schedule are in the second envelope;

xii. Commitment from the contractor’s bank to extend to it a credit line if awarded the contract to be bid, or a cash deposit certificate, in an amount not lower than that set by the agency in the Instructions to Bidders, which shall be at least equal to the operating cash flow requirement of the contract to be bid (i.e., the estimated average operating expenses for two (2) months of the contract to be bid, or ten percent (10%) of the approved budget for the contract to be bid, whichever is less);

xiii. Construction safety and health program of the contractor; and

xiv. Certificate from the bidder under oath of its compliance with existing labor laws and standards; and

xv. Documents to comply with other non-discretionary criteria and requirements as stated in the Instructions to Bidders.

b.3. For the procurement of consulting services, the information and/or documents to be provided by bidder shall be specified in the bidding documents.
c. The second envelope shall contain the following financial information/documents, at the least:
• For the procurement of goods:
  
  i. Bid prices in the Bill of Quantities in the prescribed Bid Form; and

  ii. The recurring and the maintenance costs, if applicable.

• For the procurement of civil works:
  
  i. Bid prices in Bill of Quantities in the prescribed Bid Form;
  
  ii. Detailed estimates including a summary sheet indicating the unit prices of construction materials, labor rates and equipment rentals used in coming up with the bid; and
  
  iii. Cash flow by the quarter and payments schedule.
  • For the procurement of consulting services, the information and/or documents to be provided by bidder shall be specified in the bidding documents.

d.1. Each bid for the procurement of goods and civil works shall be accompanied by a Bid Security, payable to the NFA as a guarantee that the successful bidder shall, within fifteen (15) calendar days, or less as indicated in the Instructions to Bidders, from receipt of the Notice of Award, enter into contract with the NFA and furnish the performance security. Failure to enclose the required Bid Security in the form and amount prescribed herein shall automatically disqualify the bid concerned.

d.2. The Bid Security shall be in an amount equivalent to a percentage of the approved budget for the contract to be bid, in the form of cash, cashier’s check, bank draft or guarantee against any reputable bank, letter of credit issued by a commercial bank, a surety bond callable on demand issued by the GSIS, or any combination thereof, in accordance with the following schedule:



Form of Security Minimum Amount in Percent of Approved Budget for the Contract to be Bid

Cash, certified check, cashier’s One percent
check, manager’s check, bank (1%)
draft or irrevocable letter of credit

Bank guarantee One and a half percent
(1.5%)

Surety bond Two and a half percent
(2 .5%)
d.3. The required minimum bid security, based on the above schedule, shall be stated in Philippine Pesos in the bidding documents. Bids and Bid Securities shall be valid for one hundred (120) calendar days from the date of the opening of bids.

d.4. No Bid Securities shall be returned to the bidders after the opening of bids, except to those that failed to comply with any of the requirements to be submitted in the first bid envelope of the bid. Other than this exception, Bid Securities shall be returned only after the lowest calculated and responsive bidder has signed the contract and furnished the Performance Security, but in no case later than the expiration of the Bid Security validity period indicated in the Instructions to Bidders.

a. A bidder may modify his bid, provided that this is done at least five (5) calendar days before the deadline for the submission and receipt of bids. Where a bidder modifies its bid, it shall not be allowed to retrieve its original bid, but shall only be allowed to send another bid equally sealed, properly identified, linked to its original bid and marked as “modification.” Bid modifications received after the applicable deadline shall not be considered and shall be returned to the bidder unopened.

b. A bidder may withdraw its bid before the deadline for the receipt of bids. Withdrawal of bids after the applicable deadline shall be subject to appropriate sanctions as prescribed in this SOP. A bidder may also express its intention not to participate in the bidding through a letter which should reach and be stamped received by the BAC before the deadline for the receipt of bids.

a. The BAC shall open the bids at the place, date and time specified in the Invitation to Apply for Eligibility and to Bid. The bidders or their duly authorized representatives may attend the opening of bids. All members of the BAC or their duly authorized representatives who are present during bid opening, shall initial every page of the original copies of all bids received and opened.

b. The BAC shall open the first bid envelopes of eligible bidders in public to determine each bidder’s compliance with the documents required to be submitted for the first component of the bid. For this purpose, the BAC shall check the submitted documents of each bidder against a checklist of required documents to ascertain if they are all present in the first bid envelope, using a non-discretionary “pass/fail” criteria, as stated in the Invitation to Apply for Eligibility and to Bid and the Instructions to Bidders. In case one or more of the above required documents in the first envelope of a particular bid is missing, the BAC shall rate the bid concerned as “failed” and immediately return to the bidder concerned its second bid envelope unopened. Otherwise, the BAC shall rate the said first bid envelope as “passed.”

c. The BAC shall immediately open the second bid envelopes of the remaining eligible bidders whose first bid envelopes were rated “passed.” In case one or more of the requirements in the second envelope of a particular bid is missing and/or if the submitted total bid price exceeds the approved budget for the contract, the BAC shall rate the bid concerned as “failed.” Only bids that are determined to contain all the bid requirements for both components shall be rated “passed” and shall immediately be considered for evaluation and comparison.

d. For the procurement of goods where, due to the nature of the requirements of the project, the required technical specifications/ requirements of the contract cannot be precisely defined in advance of bidding, or where the problem of technically unequal bids is likely to occur, a two (2) - stage bidding procedure may be employed. In these cases, the agency concerned shall prepare the bidding documents, including the technical specification in the form of performance criteria only. Under this procedure, prospective bidders shall be requested at the first stage to submit their respective Letter of Intent, eligibility requirements if needed, and initial technical proposals only (no price tenders). The concerned BAC shall then evaluate the technical merits of the proposals received from eligible bidders vis-à-vis the required performance standards. A meeting/discussion shall then be held by the BAC with those eligible bidders whose technical tenders meet the minimum required standards stipulated in the bidding documents for purposes of drawing up the final revised technical specifications/requirements of the contract. Once the final revised technical specifications are completed and duly approved by the concerned BAC, copies of the same shall be issued to all the bidders identified in the first stage who shall then be required to submit their revised technical tenders, including their price proposals in two (2) separate sealed envelopes in accordance with this SOP, at a specified deadline, after which time no bids shall be received. The concerned BAC shall then proceed in accordance with the procedures prescribed in this SOP.

e. For the procurement of consulting services, the detailed implementation of the procedure specified in this Section shall be as provided in Section III.5.8. of this SOP.

a. For the Procurement of Goods and Civil Works
a.1. For the procurement of goods and civil works, the purpose of bid evaluation is to determine the Lowest Calculated Bid This bid, which may not necessarily be the lowest submitted price, shall be subject to postqualification to determine its responsiveness to the eligibility and bid requirements. Once the Lowest Calculated Bid is determined and postqualified, the contract shall then be awarded to the bidder with the Lowest Calculated and Responsive Bid.

a.2. The Lowest Calculated Bid/Highest Rated Bid shall be determined as follows:

i. The detailed evaluation of the bids, to establish the correct calculated prices of the bids; and

ii. The ranking of the total bid prices as so calculated from the lowest, otherwise known as the “Lowest Calculated Bid,” to the highest.

a.3. After the bids have been submitted to the BAC and during the evaluation period, bidders that have submitted their bids are prohibited from making any kind of communication with any BAC member, including its staff and personnel, as well as its Secretariat and TWG, regarding matters connected to their bids until the issuance of the Notice of Award, unless otherwise allowed in this SOP. Likewise, members of the BAC, including its staff and personnel, as well as its Secretariat and TWG, are prohibited from making any kind of communication with any bidder regarding the evaluation of their bids until the issuance of the Notice of Award, unless otherwise allowed in this SOP.

a.4. The entire evaluation process shall be completed in not more than fifteen (15) days for the procurement of goods and civil works from the deadline for receipt of proposals. The bid with the lowest rank shall be identified as the Lowest Calculated Bid.

a.5. Detailed Evaluation of Bids for the Procurement of Goods and Civil Works

i. To determine the Lowest Calculated Bid for the procurement of goods and civil works, after the preliminary examination of bids, the BAC shall immediately conduct a detailed evaluation of all bids rated “passed,” using a non-discretionary criteria, as stated in the Invitation to Apply for Eligibility and to Bid and the Instructions to Bidders, which shall include a consideration of the following:
• The bid must be complete. Unless the Instructions to Bidders specifically allow partial bids, bids not addressing or providing all of the required items in the bidding documents shall be considered non-responsive and, thus, automatically disqualified.
• The Bid Security must conform to the requirements of the Instructions to Bidders, as to type, amount, form and wording, and validity period.
• Identification of minor/major deviations and terms and conditions as described in the Instructions to Bidders.
• Corrections for minor deviations, such as computational errors, omissions and discounts, in accordance with the bidding documents to enable proper comparison of all eligible bids. Any adjustment to correct minor deviations shall be calculated in monetary terms to determine the calculated prices. For the procurement of goods, the BAC may employ any of the specific price equalization procedures provided under Annex E that it deems appropriate for the requirement of a particular contract and shall be so indicated in the bidding documents. The use of any such procedure shall be subject to the prior approval of the NFA Administrator.
ii. Based on the detailed evaluation of bids, those that comply with the above-mentioned requirements shall be ranked in the ascending order of their total calculated bid prices, as evaluated and corrected for computational errors, discounts and other modifications, to identify the Lowest Calculated Bid. Total calculated bid prices, as evaluated and corrected for computational errors, discounts and other modifications, which exceed the approved budget for the contract shall not be considered.

iii. After all bids have been received, opened, examined, evaluated and ranked, the BAC shall prepare the corresponding Abstract of Bids. All voting and non-voting members of the BAC or their duly authorized representatives shall sign the Abstract of Bids and attach thereto all the bids with their corresponding Bid Securities and the minutes or proceedings of the bidding. The Abstract of Bids shall contain the following:

• Name of the contract and its location, if applicable;
• Time, date and place of bid opening; and
  • Names of bidders and their corresponding bids arranged from lowest to highest, the amount of Bid Security and the name of the issuing entity

b.1. For the procurement of consulting services, the purpose of bid evaluation is to determine the Highest Rated Bid. This bid shall be subject to postqualification to determine its responsiveness to the eligibility and bid requirements. Once the Highest Rated Bid is determined and postqualified the contract shall then be awarded to the bidder with the Highest Rated and Responsive Bid.

b.2. The Highest Rated Bid shall be determined in two steps:

i. The detailed evaluation of the bids of the short listed bidders using numerical ratings based on either the quality-based selection procedure or the quality-cost based evaluation procedure; and

ii. The ranking of the bidders based on the numerical ratings from the highest, otherwise known as the “Highest Rated Bid,” to the lowest.

b.3. Detailed Evaluation Procedure for the Procurement of Consulting Services
i. The Administrator shall have the option as to the evaluation procedure to be adopted for consultants, which shall either be quality-based or quality-cost based (Annex F). The consultant selection procedure adopted shall be stated in the Invitation to Apply for Eligibility and to Bid and the TOR.

ii. For the evaluation of proposals, numerical ratings shall be used. In order to eliminate subjectivity in evaluating the technical proposals, the highest and lowest scores of a consultant for each criterion shall not be considered in determining the average scores of the consultants.

iii. After the bids have been submitted to the BAC and during the evaluation period, bidders that have submitted their bids are prohibited from making any kind of communication with any BAC member, including its staff and personnel, as well as its Secretariat and TWG, regarding matters connected to their bids until the approval by the head of the agency of the ranking of short-listed bidders. Likewise, members of the BAC, including its staff and personnel, as well as its Secretariat and TWG, are prohibited from making any kind of communication with any bidder regarding the evaluation of their bids until the approval by the NFA Administrator of the ranking of short-listed bidders. The proposal with the highest rank shall be identified as the Highest Rated Bid.

iv. The technical proposals of consultants shall be evaluated based on the following criteria:

• Quality of personnel to be assigned to the project which covers suitability of key staff to perform the duties of the particular assignments and general qualifications and competence including education and training of the key staff;
• Experience and capability of the consultant which include records of previous engagement and quality of performance in similar and in other projects; relationship with previous and current clients; and, overall work commitments, geographical distribution of current/impending projects and attention to be given by the consultant. The experience of the consultant shall consider both the overall experiences of the firm and the individual experiences of the principal and key staff including the times when employed by other consultants; and
• Plan of approach and methodology with emphasis on the substance of the proposal as to the plan of approach and interpretation of project problems and solutions.

For complex or unique undertakings, such as those involving new concepts/technology or financial advisory services, participating short-listed consultants may be required, at the option of the agency concerned, to make an oral presentation to be presented by each consultant, or its nominated Project Manager or head, in case of consultant firms, within fifteen (15) days after the deadline for submission of technical proposals.
v. The BAC shall furnish all participating short-listed consultants with the results (ranking and total scores only) of the evaluation after the approval of the ranking by the Administrator or his duly authorized representative. The NEDA and the umbrella organization of the consultants shall also be furnished with the results of the ranking which shall also be posted in the EPS and the NFA website, for a period of not less than two (2) weeks
b.4. The entire evaluation process, including the submission of the results thereof to the NFA Administrator or his duly authorized representative for approval, shall be completed in not more than twenty-one (21) calendar days after the deadline for receipt of proposals.

b.5. The Administrator or his duly authorized representative shall approve or disapprove the recommendations of the BAC within two (2) calendar days after receipt of the results of the evaluation from the BAC. In case of foreign-assisted projects, the results of the evaluation together with the criteria used shall be submitted to the International Financial Institution (IFI) as required or agreed upon within five (5) calendar days after approval of the same by the NFA Administrator. Short-listed consultants shall likewise be furnished and other interested parties shall be given access to the results of the evaluation after the approval of the resolution of the award.

b.6. There should be no replacement of key personnel before the awarding of contract, except for justifiable reason, such as, among others, delay in the selection process due to the fault of the NFA. The NFA shall immediately consider negotiation with the next ranked consultant if unjustifiable replacement of personnel by the first ranked firm is made. Once the contract has been awarded, no replacement shall be allowed until after fifty percent (50%) of the personnel’s man-months have been served, except for justifiable reasons. Violators will be fined an amount equal to the refund of the replaced personnel’s basic rate, which should at least fifty percent (50%) of the total basic rate for the duration of the engagement.

The BAC shall automatically disqualify a bid that contains a major deviation. Examples of major deviations are the following:

i. Failing to respond to the contract plans and specifications, by offering a different design or work item;

ii. Stipulating a price adjustment;

iii. Subcontracting beyond allowable limits; and

iv. Taking exception to critical provisions or setting conditions to the bidders, such as applicable laws, taxes and duties, and dispute resolution procedures.

The approved budget for the contract under bidding shall be the upper limit or ceiling for acceptable bids. All bids, as evaluated and calculated in accordance with the provisions of this SOP, which are higher than the approved budget for the contract under bidding, shall automatically be disqualified. There shall be no lower limit or floor on the amount of the award.

a. Within seven (7) calendar days from the determination of Lowest Calculated Bid or the Highest Rated Bid, as the case may be, the BAC shall conduct and accomplish a postqualification of the bidder with the Lowest Calculated Bid/Highest Rated Bid, to determine whether the bidder concerned complies with and is responsive to all the requirements and conditions for eligibility, the bidding of the contract, as specified in the bidding documents, in which case the said bidder’s bid shall be considered and declared as the “Lowest Calculated and Responsive Bid” for the procurement of goods and civil works, or the “Highest Rated and Responsive Bid” for the procurement of consulting services.

b. The postqualification shall verify, validate and ascertain all statements made and documents submitted by the bidder with the Lowest Calculated Bid/Highest Rated Bid, using non-discretionary criteria, as stated in the Invitation to Apply for Eligibility and to Bid and the Instructions to Bidders. These criteria shall consider, but shall not be limited to the following:

b.1. Legal Requirements. To verify and validate licenses and agreements submitted by the bidder.
(i) Technical Requirements. To determine compliance of the goods, civil works or consulting services offered with the requirements of the contract and bidding documents, including, where applicable: verification and validation of the bidder’s stated competence and experience, and the competence and experience of the bidder’s key personnel to be assigned to the project, for the procurement of civil works and consulting services;

(ii) verification of availability and commitment, and/or inspection and testing, of equipment units to be owned or leased by the bidder, as well as checking the performance of the bidder in its ongoing government and private contracts (if any of these on-going contracts shows a reported negative slippage of at least fifteen percent (15%), or substandard quality of work as per contract plans and specifications, or unsatisfactory performance of his obligations as per contract terms and conditions, at the time of inspection, and if the BAC verifies any of these deficiencies to be due to the contractor’s fault or negligence, the agency shall disqualify the contractor from the award), for the procurement of civil works;

(iii) verification and/or inspection and testing of the goods/product, after-sales and/or maintenance capabilities, in applicable cases, for the procurement of goods; and

(iv) ascertainment of the sufficiency of the Bid Security as to type, amount, form and wording, and validity period.

b.2. Financial Requirements. To verify and validate the bid price proposal of the bidder and, whenever applicable; the required bank commitment to provide a credit line to the bidder in the amount specified and over the period stipulated in the Instructions to Bidders, to ensure that the bidder can sustain the operating cash flow of the transaction. For the procurement of civil works, this shall cover as well, the bidder’s stated net worth and liquid assets, net working capital, the value of all outstanding or unfinished works under ongoing contracts including awarded contracts yet to be started, and the bidder’s NFCC.
c. If the BAC determines that the bidder with the Lowest Calculated Bid/Highest Rated Bid passes all the criteria for postqualification, it shall declare the said bidder as the bidder with the Lowest Calculated and Responsive Bid or Highest Rated and Responsive Bid, as the case may be, and the NFA Administrator shall award the contract to the said bidder.

d. If, however, the BAC determines that the bidder with the Lowest Calculated Bid/Highest Rated Bid fails the criteria for postqualification, it shall immediately notify the said bidder in writing of its postdisqualification and the grounds for it. The postdisqualified bidder shall have seven (7) calendar days from receipt of the said notification to request from the BAC, if it so wishes, a reconsideration of this decision. The BAC shall evaluate the request for reconsideration, if any, using the same non-discretionary criteria, and shall issue its final determination of the said request within seven (7) calendar days from receipt thereof.

e. Immediately after the BAC has notified the first bidder of its postdisqualification, and notwithstanding any pending request for reconsideration thereof, the BAC shall initiate and complete the same postqualification process on the bidder with the second Lowest Calculated Bid/Highest Rated Bid. If the second bidder passes the postqualification criteria, and provided that the request for reconsideration of the first bidder has been denied, the second bidder shall be postqualified as the bidder with the Lowest Calculated and Responsive Bid or Highest Rated and Responsive Bid, as the case may be, and the head of the agency concerned shall award the contract to it.

f. If the second bidder, however, fails the postqualification criteria, the procedure for postqualification shall be repeated for the bidder with the next Lowest Calculated Bid/Highest Rated Bid, and so on until the Lowest Calculated and Responsive Bid or Highest Rated and Responsive Bid, as the case may be, is determined for award.

g. If no bidder passes postqualification, the BAC shall declare the bidding a failure and conduct a re-bidding with re-advertisement and/or posting, as provided for in this SOP.

a. A Single Calculated and Responsive Bid shall be considered under any of the following circumstances:
i. If after advertisement, only one prospective bidder submits a Letter of Intent and/or applies for eligibility check, and it meets the eligibility requirements or criteria, after which it submits a bid which is found to be responsive to the bidding requirements.
ii. If after advertisement, more than one prospective bidder submits a Letter of Intent and/or applies for eligibility check, but only one bidder meets the eligibility requirements or criteria, after which it submits a bid which is found to be responsive to the bidding requirements.
iii. If after the eligibility check, more than one bidder meets the eligibility requirements, but only one bidder submits a bid, and its bid is found to be responsive to the bidding requirements.
b. In the case of consulting services, a single rated responsive bid shall be considered under the same circumstances as above.

a. The BAC shall declare the bidding a failure and conduct a re-bidding with advertisement and/or posting, in accordance with the provisions therefor in this SOP, after a re-evaluation of the terms, conditions and specifications of the first bidding, when:
i. No prospective bidder submits a Letter of Intent or no bids are received;

ii. when all prospective bidders are declared ineligible; or

iii. when all bids fail to comply with all the bid requirements or fail postqualification.

b. The BAC shall modify the terms, conditions and specifications in the first bidding documents, when necessary, to address errors in agency cost estimates or specifications. However, the approved budget for the contract shall be maintained as the ceiling for the bid prices. Should there occur another failure of bidding after the conduct of the contract’s re-bidding, the NFA may enter into a negotiated procurement.

The NFA reserves the right to reject any and all bids, or declare a failure of bidding, or not award the contract, if there is evidence of collusion between relevant public officers or employees of the NFA or the BAC and any of the bidders, or among the bidders, or between bidders and third parties, including any act which restricts, suppresses or nullifies competition, or if the BAC is found to have failed to follow the prescribed bidding procedures. The NFA also reserves the right to waive any required formality in the bids received, provided that such waiver does not refer to a major deviation in a bid or any requirement provided in this SOP pertaining to the substance of a bid.

The procurement process from the opening of bids up to the award of contract shall not exceed three (3) months. The estimated periods for action on specific bidding activities are provided for in Annex G.

6.1. Contract Award

a. The decision whether or not to award the contract shall be made, and the corresponding Notice of Award shall be issued within thirty (30) calendar days from the date the BAC finally determines and declares the Lowest Calculated and Responsive Bid or Highest Rated and Responsive Bid, as the case may be. All Notices of Award including those to be issued at the Field Offices shall be signed by the NFA Administrator or his duly authorized representative at the Central Office.

b. For foreign-assisted projects, the decision to award the contract by the NFA Administrator or his duly authorized representative shall be transmitted to the IFI concerned for concurrence, as may be required, within seven (7) calendar days from the date the decision to award the contract is made. The Notice of Award shall then be signed by the NFA Administrator and issued within seven (7) calendar days from the date of concurrence of the IFI concerned.

c. Contract award shall be made within the bid validity period. Should it become necessary to extend the validity of the bids and, if applicable, the bid securities, the NFA shall request in writing all those who submitted bids for such extension before the expiration date therefore. Bidders, however, shall have the right to refuse to grant such extension without forfeiting their bid security.

d. Notice of Award shall immediately be posted on the websites of the DBM-PS and the NFA and in a conspicuous place within the premises of the concerned NFA Office. A copy thereof may be requested in writing.

e. The following documents shall form part of the contract:

i. Contract Agreement;
ii. Conditions of Contract;
iii. Drawings/Plans, if applicable;
iv. Specifications, if applicable;
v. Invitation to Apply for Eligibility and to Bid;
vi. TOR;
vii. Addenda;
viii. Bid form including all the documents/statements contained in the winning bidder’s two bidding envelopes, as annexes;
ix. Eligibility requirements, documents and/or statements;
x. Performance Security, if applicable;
xi. Credit Line issued by an authorized bank in accordance with the provisions of this SOP, if applicable;
xii. Notice of Award of Contract and Contractor’s ”Conforme” thereto; and
xiii. Other contract documents that may be required by existing laws and/or the NFA.
f. To facilitate the approval of the contract, the following supporting documents shall be submitted:

i. Duly approved program of work or delivery schedule, and Cost Estimates;

ii. Certificate of availability of funds;

iii. Abstract of Bids;

iv. Resolution of the BAC recommending Award;

v. Approval of award by the NFA Administrator or his duly authorized representative;

vi. Concurrence of IFI, in case of foreign-assisted contracts; and

vii. Other pertinent documents that may be required by the NFA under existing laws.

a. The winning bidder or his duly authorized representative shall sign the contract within ten (10) calendar days from his receipt of the Notice of Award. The NFA Administrator or his duly authorized representative shall sign/approve the contract in accordance with existing laws, rules and regulations as soon as possible, but not later than fifteen (15) calendar days from the date the winning bidder or his duly authorized representative shall have signed the contract and submitted all documentary requirements to perfect the contract.

b. All approved contracts at the Central Office shall be notarized at the Department for Legal Affairs (DLA) immediately after signing by both parties. Contracts executed at the Field Offices shall be notarized thereat, however, the DLA should be furnished with copies of all the approved/notarized contracts.

c. All contracts shall follow a standard format to be prescribed by the DLA (only one format shall be used for each specific type of services) except for commonly used supplies/materials and equipment for which the Purchase Order (P.O.) may be used.

d. In accordance with Section 3 of Executive Order No. 164, series of 1987 (E.O. 164), the NFA shall furnish NEDA with copies of all consultancy contracts involving the amount of one million pesos (P1,000,000.00) or more, complete with attachments, including the documents leading to the award of the contract, for monitoring purposes.

The NFA shall then issue the Notice to Proceed to the successful bidder within seven (7) calendar days from the date of signing/approval of the contract by the NFA Administrator or his duly authorized representative. The effectivity date of the Notice to Proceed shall be specified, and all notices called for by the terms of the approved contract shall be effective only from such date.

a. Except for the procurement of consulting services, to guarantee the faithful performance of the contract awardee, he shall post in favor of the NFA within five (5) working days from the date of receipt of the approved contract, a performance security according to the following schedule:

Cash, Manager’s Check or 5%

Irrevocable Letter of Credit 5%

Bank Draft confirmed by a local 5%

Bank guarantee confirmed by a local 10%
bank (in case of foreign bidders,
bonded by a foreign bank)

Surety Bond 30%

Any combination of the above Proportionate to share of Form with respect to total amount of security

b. Performance Security shall be posted in favor of the NFA, and shall guarantee the payment of the amount of the security as penalty in the event it is established that the winning bidder is in default in any of its obligations under the contract.
c. In the execution of the Performance Security, the following conditions shall be complied with:
i. It shall be executed in the form prescribed by the NFA in the Instructions to Bidders;

ii. It shall at least be co-terminus with the final completion of the contract; and

iii. For the procurement of civil works, the following provisions shall form part of the Performance Security: “The right to institute action on the penal bond pursuant to Act No. 3688 of any individual firm, partnership, corporation and association supplying the contractor with labor and materials for the prosecution of the work is hereby acknowledged and confirmed.”

d. Subject to the conditions of the contract, the Performance Security may be released by the NFA after the issuance of the Certificate of Acceptance of the goods, in the case of procurement of goods, provided that there are no claims filed against the contract awardee or the surety company; or, in the case of procurement of civil works, after the issuance of the Certificate of Completion of the contract, provided that there are no claims for labor and materials filed against the contractor or the surety company.

e. The winning bidder shall post an additional performance security following the schedule above to cover any cumulative increase of more than ten percent (10%) over the original value of the contract as a result of adjustments in costs or unit prices, and/or amendments to order or change orders, extra work orders and supplemental agreements, as the case may be. The winning bidder shall cause the extension of the validity of the Performance Security to cover approved contract time extensions.

f. In case of a reduction in the contract value, or, in the case of procurement of civil works, for partially completed works under the contract which are utile and accepted by the NFA, and the use of which in the judgment of the NFA will not affect the structural integrity of the entire project, the NFA shall allow a proportional reduction in the original Performance Security, provided that any such reduction is more than ten percent (10%) and that the aggregate of such reductions is not more than fifty percent (50%) of the original Performance Security.

a. If the bidder with the Lowest Calculated and Responsive Bid or Highest Rated and Responsive Bid, as the case may be, or the bidder with the Single Calculated/Rated and Responsive Bid, fails, refuses or is unable to make good its bid by entering into a contract with the agency or, in the case of procurement of goods and civil works, post the required Performance Security within the period stipulated in the bidding documents, the bid security shall be forfeited where so applicable, and the appropriate sanctions shall be imposed, except where such failure, refusal or inability is through no fault of the said bidder.

b. In the case of failure, refusal or inability of the bidder with the Single Calculated/Rated and Responsive Bid to enter into contract and post the required Performance Security, as the case may be, as provided in this Section, the BAC shall disqualify the said bidder, and shall declare the bidding a failure and conduct a re-bidding without re-advertisement, in which case, a direct notification shall be extended to all bidders either by mail, by hand, or electronically. Should there occur another failure of bidding after the conduct of the contract’s re-bidding, the agency concerned may enter into a negotiated procurement.

c. In the case of the failure, refusal or inability of the bidder with the Lowest Calculated and Responsive Bid or Highest Rated and Responsive Bid, as the case may be, to enter into contract and post the required Performance Security, as the case may be, as provided in this Section, the BAC shall disqualify the said bidder, and shall initiate and complete the postqualification process on the bidder with the second Lowest Calculated Bid/Highest Rated Bid. This procedure shall be repeated until the Lowest Calculated and Responsive Bid or Highest Rated and Responsive Bid, as the case may be, is determined for award. However, if no bidder passes postqualification, the BAC shall declare the bidding a failure and conduct a re-bidding without re-advertisement, in which case, a direct notification shall be extended to all bidders either by mail, by hand, or electronically. Should there occur another failure of bidding after the conduct of the contract’s re-bidding, the NFA may enter into a negotiated procurement.

a. For the procurement of goods, to assure that manufacturing defects will be corrected by the contract awardee for a fixed time after delivery, a warranty shall be required of the winning bidder, the obligations for which shall be covered by either retention moneys in the amount equal to ten percent (10%) of every progress payment, or a special bank guarantee equivalent to ten percent (10%) of the total contract price. Such amounts shall only be released after the warranty period provided that the goods supplied are free from defects and all the conditions imposed under the contract are fully met.

b. For supply contracts which include installation and commissioning services in addition to the supply of goods, the period and the required obligation of the warranty shall cover the same.

a. An equitable indemnification package for officials/staff providing services in the BAC, Secretariat and the Technical Working Group, which may be in the form of free legal assistance, liability insurance, and other forms of indemnification and protection; and

b. A set of sanctions for violations of E.O. 40 committed by officials/staff providing services in the BAC, Secretariat and the TWG, without prejudice to the provisions of Republic Act No. 3019, otherwise known as the “Anti-Graft and Corrupt Practices Act,” Republic Act No. 6713, otherwise known as the “Code of Conduct and Ethical Standards for Public Officials and Employees,” and the Civil Service Law, among others.

a. The NFA shall impose on bidders or prospective bidders, the administrative penalties of suspension from participating in any public bidding of the agency for one (1) year for the first offense and two (2) years for the second offense, as well as disqualification from further participating in the public bidding currently being undertaken by the agency concerned, where applicable, for the following acts or violations, without prejudice to the imposition of criminal and civil sanctions as provided by laws, rules and regulation:

i. Submission of eligibility requirements containing false information or falsified documents;

ii. Submission of bids that contain false information or falsified documents or the concealment of such information in the bids;

iii. Allowing the use of one’s name or using the name of another for purposes of public bidding;

iv. Withdrawal of a bid or refusal to accept an award or enter into a contract without just cause after it shall have been determined to have submitted the Lowest Calculated and Responsive Bid or the Highest Rated and Responsive Bid;

v. Refusal or failure to post the required performance security within the prescribed time;

vi. Termination of the contract due to the default of the bidder;

vii. Any documented unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor; and

viii. All other acts that tend to defeat the purpose of the public bidding.

b. In addition to the above administrative penalties, the Bid Security or the Performance Security of the bidder concerned, where applicable, shall also be forfeited in favor of the NFA. The authority to impose the above-mentioned administrative penalties may be delegated by the NFA Administrator to the BAC.

c. For consultancy contracts, if the misrepresentation is discovered during the effectivity of the consultancy contract, the agency shall have the right to cancel the contract after thirty (30) calendar days from the date a written notice to this effect is given to the consultant. In the event of such cancellation of the contract, the amounts to be paid to the consultant shall be adjusted equitably to the work accomplished and such sum of money received by the consultant in excess of the amount corresponding to the work done shall be refunded by the latter to the NFA within ten (10) calendar days after the cancellation of the contract.

d. The right of recourse of the NFA as herein above provided shall be without prejudice to the liability that the Consultant may incur under the pertinent provisions of the Revised Penal Code.