Contract Implementation and Termination

Section 42. Contract Implementation and Termination

42.1. The contract implementation guidelines for the procurement of goods, supplies and materials are provided for in Annex “D” of this IRR.

42.2. The contract implementation guidelines for the procurement of infrastructure projects are provided for in Annex “E” of this IRR.

42.3. The contract implementation guidelines for the procurement of consulting services are provided for in Annex “F” of this IRR.

42.4. The contract termination guidelines as provided for in Annex “I” of this IRR. (n)

42.5. No incentive bonus, in whatever form or for whatever purpose, shall be allowed. (42.4)

42.6. Procuring Entities may cause the issuance of the letter of credit in favor of a local or foreign suppliers: Provided, That no payment on the letter of credit shall be made until delivery and acceptance of the goods as certified to by the Procuring Entity in accordance with the delivery schedule provided for in the contract have been concluded: Provided, further, That the cost for the opening of letter of credit shall be for the account of the local or foreign supplier and must be stated in the Bidding Documents. (42.5a)

RULE XII – DOMESTIC AND FOREIGN PROCUREMENT

Section 43. Procurement of Domestic and Foreign Goods

43.1. Scope and Application

43.1.1. Consistent with the GoP’s obligations under international treaties or agreements, goods may be obtained from domestic or foreign sources: Provided, however, That the procurement thereof shall be open only to eligible suppliers, manufacturers and distributors: Provided, further, That in the interest of availability, efficiency and timely delivery of goods, the Procuring Entity may give preference to the purchase of domestically-produced and manufactured goods, supplies and materials that meet the specified or desired quality, in accordance with the provisions of Commonwealth Act No. 138.

43.1.2. The Procuring Entity shall give preference to materials and supplies produced, made and manufactured in the Philippines, subject to the conditions herein below specified. The award shall be made to the lowest Domestic Bidder, provided his bid is not more than fifteen percent (15%) in excess of the lowest Foreign Bid. (a)

43.1.3. A Domestic Bidder can only claim preference if it secures from the DTI a certification that the articles forming part of its bid are substantially composed of articles, materials, or supplies grown, produced, or manufactured in the Philippines. (43.1.4)

43.2. Procedures and Guidelines

43.2.1. The preference shall be applied when the lowest Foreign Bid is lower than the lowest bid offered by a Domestic Bidder. The Procuring Entity shall ensure that both bids are responsive to the minimum requirements as specified in the Bidding Documents. (a)

43.2.2. For evaluation purposes, the lowest Foreign Bid shall be increased by fifteen percent (15%).

43.2.3. In the event that the lowest bid offered by a Domestic Bidder does not exceed the lowest Foreign Bid as increased, the Procuring Entity shall award the contract to the Domestic Bidder at the amount of the lowest Foreign Bid. (a)

43.2.4. If the Domestic Bidder refuses to accept the award of contract at the amount of the Foreign Bid within two (2) calendar days from receipt of written advice from the BAC, the Procuring Entity shall award the contract to the bidder offering the Foreign Bid.

43.2.5. The award of contract shall be subject to post-qualification and submission of all the documentary requirements under this IRR. (n)

RULE XIII – BIDDING OF PROVINCIAL PROJECTS