ATTENDANCE:
PRMF Office
1. Engr. CIPRIANO A. RAVANES, JR. - BAC Chairperson
PRMF Procurement Coordinator
2. Engr. TEODORO S. REGINO, JR. - BAC Vice-Chairperson
PRMF Road Engineer Coordinator
3. Ms. ROSALINDA ILAYA - Member
Project Manager, DILG
4. Engr. ROSALINDA B. YU - Member
PGSO, LGU Bohol
5. Engr. EMMANUEL C. CABERTE - Member
Engr. IV, PEO, LGU Bohol
6. Engr. DONDON ALMONACID
PRMF Finance Manager
7. Engr. ANANIAS FERNANDEZ
PRMF Procurement and Contracts Officer
Bidders
1. Mr. Romeo C. De Austria - O.R. Sarmiento Construction
2. Ms. Lina S. Dela Torre - YS Construction
3. Mr. Nelson Yu - Yu Construction
4. Mr. Rodrigo Labunog - Proprietor, Labb Construction
5. Mr. Edmund O. Putang - Project Engineer, Sto. Nino Construction
6. Ms. Gladys M. Desepeda - Business Development Officer, Sta. Clara Corp.
7. Mr. Gary Galvez - Quantity Surveyor, Sta. Clara Corp.
8. Ms. Lucina D. Tagaro - BNYU Enterprise and Construction
9. Ms. Janet P. Luzano - S. & C.U. Construction

Others

1. Mr. Eichsman Baniaga - Documentor

1. Upon determination of a quorum, Engr. Ravanes called the meeting to order at around 9:05 am.
2. After welcoming all the participants to the Pre-Bid Conference (PBC), Engr. Ravanes introduced the members of the PRMF-BAC to the bidders. He explained that the Bids and Awards Committee is an inter-agency body composed of officials from Coffey international Development (CID)/Facility Managing Contractor (FMC), from the Department of the Interior and Local Government (DILG), and from the Provincial Government of Bohol. He also informed the bidders that, to add greater transparency to the procurement process, the Transparency and Accountability Network, a non-governmental organization, and the Philippine Constructors Association, a contractors group, were invited to observe the proceedings. Unfortunately, both organizations were unable to send representatives to observe the PBC. The representatives of the bidders/contractors then introduced themselves to the body.
3. Engr. Ravanes explained to the bidders that the PRMF is a five-year grant facility funded by the Australian Agency for International Development (AusAID) and is being implemented in partnership with DILG and select provinces. The Project (PRMF-BOH-01) is one of seventeen (17) projects covered under the First Year Priority Works Program of PRMF. All 17 projects are rehabilitation of provincial gravel roads that will involve earthworks, preparation of sub-base and surface courses, drainage and erosion control works, and construction of concrete and miscellaneous structures. He further clarified that for the First Year Priority Works Program, the Procuring Entity is the FMC represented by CID, while the Project Owner is the concerned Provincial Government (Bohol for this Project). The concerned Provincial Government may take over the procurement-related responsibilities starting on the second year or when AusAID determines that provincial systems meet minimum acceptable standards.
4. The bidders were informed that the procurement process for PRMF projects shall follow the provisions of Republic Act No. 9184 and its Revised Implementing Rules and Regulations (RA 9184/Revised IRR) but incorporating the procurement-related exceptions/amendments stated in the Memorandum of Subsidiary Arrangement (MSA) between the Government of Australia (GOA) and the Government of the Philippines (GOP). Engr. Ravanes then discussed the following salient features of the Revised IRR that will apply to PRMF procurement:
a. The Procuring Entity has the option to allow anyone interested in the bidding to attend the PBC, or only those who purchased the bidding documents shall be allowed to participate in the PBC. The Procuring Entity, which is the FMC, opted for the latter.
b. For procurement of infrastructure projects (or works), the submission of eligibility documents shall now be simultaneous with the submission of the technical and financial bid documents. The eligibility documents shall be included in the technical bid envelope. The number of eligibility documents required during bid submission has been reduced. As part of the technical bid documents, an Omnibus Sworn Statement shall be submitted which enumerates the responsibilities of the Bidder.
The bidder that submits the lowest calculated bid shall be required, as part of post-qualification, to submit other eligibility documents. If post-qualification is successful, the bidder being considered for award shall submit, among others, the remaining technical documents as enumerated in the Bid Data Sheet.
c. The amounts for bid and performance securities (in percentages) have been increased depending on the form of security the bidder will be submitting. Engr. Ravanes clarified that for PRMF procurement, not all forms of securities as presented in the Revised IRR shall be acceptable.
d. Once the bids have been opened and evaluation has started, the bidders are prohibited to contact the PRMF-BAC or its Secretariat until the Notice of Award is issued to the bidder being considered for award, and vice-versa. However, if there is anything in the bidding documents submitted by a bidder that is not clear to the PRMF-BAC, it was emphasized by Engr. Ravanes that the PRMF-BAC, through the Secretariat, may request for a clarification in writing from the concerned bidder who is expected to respond immediately also in writing.
e. During post-qualification of the bidder that submitted the lowest calculated bid, said bidder has to submit within three (3) calendar days from receipt of notice its Tax Clearance Certificate, its latest Income and Business Tax Returns, and its Certificate of PhilGEPS Registration.
f. If post-qualification is successful, the bidder that submitted the lowest calculated and responsive bid shall be awarded the contract. The bidder shall sign the contract, post the performance security and submit the following documents within ten (10) days from receipt of the Notice of Award: the Joint Venture Agreement if a joint venture, Construction Schedule and S-Curve, Manpower Schedule, Construction Method, Equipment Utilization Schedule, Construction Safety and Health Program, PERT/CPM, and Affidavit of Site Inspection.
5. Before explaining the MSA exceptions/amendments, Engr. Ravanes provided a background of the MSA to the bidders. He cited the MSA as providing guidance to the GOA and GOP in the use of the grant funds for PRMF. While there are a number of procurement-related provisions in the MSA, only the following that affect the First Year Priority Works Program were discussed:
a. The Revised IRR/RA 9184 with the applicable MSA exceptions/amendments shall be used for procurement of infrastructure projects (or works) with a contract value of US$5 million and below. All PRMF contracts for infrastructure are well within the said cost threshold.
b. Any foreign firm or contractor interested in PRMF procurements shall be allowed to participate. Further, they shall be allowed to bid without registration, licensing, and other government authorizations. However, they will have to comply with the requirements if they are being considered for award or before contract signing.
c. A bidder will not be eligible to bid for PRMF procurements if it is listed in the World Bank’s ‘Listing of Ineligible Firms’ or ‘Listing of Firms, Letters of Reprimand’. A bidder who has misappropriated funds or engaged in corrupt, fraudulent, collusive or coercive practices will not be eligible for PRMF procurements.
d. No bidder that has previously breached contract conditions under any AusAID-related procurement, or has not fully delivered the services required under the contract will be eligible to tender for PRMF procurements.
e. There will be no domestic or regional preference applied in the evaluation of bids.
f. Unlike in RA 9184 where the approved budget for the contract is the ceiling for bid prices, there shall be no bid ceiling applied to any tender related to PRMF procurements.
g. The FMC is not obliged to accept any tender received for any PRMF procurement. In relation to para. f) above, Engr. Ravanes explained to the bidders that the bidder that submits the lowest bid price is not assured of being awarded the contract. The PRMF-BAC shall assess the reasonableness of the submitted bid price. If the bid price is deemed reasonable by the PRMF-BAC and the bid is responsive to the bidding requirements, the bidder shall be recommended for award of contract.
h. The bid preparation period for all PRMF procurements, or from 04 February 2010 when the bid documents were made available up to the deadline for submission of bids, shall be a minimum of 36 days.
i. Any bid will not be rejected as late if the reason for the lateness is due solely to mishandling or other error, action or omission by the Procuring Entity or FMC. Engr. Ravanes stated this may happen if the PRMF-BAC changes the venue or advances the deadline for bid submission ‘at the last minute’. Engr. Ravanes informed the bidders that neither of the two situations will happen as he assured the bidders that there will be no change in venue nor deadline for bid submission. He instructed the bidders to take note of the time reflected in the wallclock in the Conference Room as this will be the reference time adopted for the bid submission deadline.
j. AusAID, or any entity authorized by AusAID, has the right to inspect at any reasonable time the premises and records of any contractor that is awarded a contract covered under the PRMF.
k. The contractor shall be paid within 30 days from submission of a duly issued invoice. The FMC shall endeavor to pay the contractor within a shorter period.
6. Engr. Ravanes then proceeded in discussing the bidding documents that were adopted for the provincial road rehabilitation projects covered under the First Year Priority Works Program of PRMF.
a. Section 1. Invitation to Bid
1. The Invitation to Bid provides adequate information to enable potential bidders to decide whether or not to participate. Since the PRMF is a foreign-assisted project, it is open to all bidders, local or foreign. Engr. Ravanes informed the bidders that to date, no foreign bidders have bought the bidding documents for any of the 17 PRMF projects. There is no approved budget for the contract (ABC) published. The Invitation was advertised in the national newspapers twice (Philippine Star on 04 February and Manila Bulletin on 14 February), in the local/regional newspaper, and posted in the PRMF and Provincial Government websites.
b. Section 2. Instructions to Bidders (ITB)
1. The ITB provides the necessary information to help bidders prepare a responsive bid. The ITB for PRMF basically followed the ITB provisions of the Philippine Bidding Documents/RA 9184 but incorporating the MSA exceptions/amendments.
2. Section 5 of ITB (Eligible Bidders) clarifies that government entities, national or local, are not eligible to bid in PRMF activities. Further, reference to the ABC has been replaced by the bid price with respect to the experience requirement of the bidder (satisfactorily completed a similar contract with a value at least equal to 50% of the bid price), Net Financial Contracting Capacity which should at least be equal to 100% of its bid price, and the credit line commitment whose value should at least be equal to 10% of its bid price.
3. Section 6 (Bidder’s Responsibilities) requires the bidders to submit an Omnibus Sworn Statement on their responsibilities as enumerated in said Section, and also defines the Head of the Procuring Entity as the PRMF Team Leader representing CID/FMS, and not the provincial governor.
4. Section 8 (Subcontracts) emphasizes that no sub-contracting is allowed under PRMF projects.
5. Section 12 of ITB is for the benefit of foreign bidders who may be interested to participate. For the eligibility documents, the foreign bidders may submit the equivalent documentations, if any. And for the technical document, particularly the Philippine Contractors Accreditation Board license, this may be submitted by the foreign bidder prior to contract signing.
6. Section 13 of ITB clearly specifies that there is no ceiling for financial bids. Engr. Ravanes reiterated that the bidder that submits the LCB is not assured of being awarded the contract. The reasonableness of its bid shall be assessed by the PRMF-BAC and must be responsive to the bidding requirements.
7. Section 14 (Alternative Bids) states that alternative bids shall not be accepted. The bidders shall submit a bid that complies with the specifications and standards provided in the Bidding Documents.
8. Section 15 (Bid Prices) provides that all bid prices shall be fixed prices. Considering the relatively short contract duration, there shall be no price escalation allowed for all infrastructure projects covered under the First Year Priority Works Program.
9. Section 16 (Bid Currencies) clarifies that all bid prices and payment of contract prices shall be in Philippine Pesos.
10. Section 17 (Bid Validity) states that bids submitted shall be valid for a period of 60 days after bid opening. The BAC has scheduled award of contract to take place a month after bid opening.
11. Section 18 (Bid Security) also mentions that the validity period of the bid security shall be for a period of 60 days. Engr. Ravanes further clarified that the acceptable forms of bid security are bank guarantees, letters of credit, and surety bonds. Bidders submitting cash, manager’s/cashier’s check, or bank draft shall be disqualified.
12. Section 22 (Late Bids) provides that a late bid shall not be rejected if the reason for its lateness is due solely to the mishandling or other error committed by the Procuring Entity. At this point, Engr. Ravanes reiterated to the bidders that the venue and deadline for bid submission as indicated in the advertisement and bidding documents shall not be changed.
13. Section 26 (Clarification of Bids) provides the Procuring Entity may request in writing any bidder for a clarification of its bid. The bidder shall immediately respond to the request for clarification also in writing.
14. Section 28 (Post-qualification) requires the bidder, within 3 days from receipt of notice that it submitted the LCB, to submit its Tax Clearance Certificate, its Income and Business Tax Returns, and its Certificate of PhilGEPS Registration.
15. Section 30 (Contract Award) similarly requires the bidder, if it passes post-qualification, within 10 days from receipt of the Notice of Award to submit its Joint Venture Agreement (if it is in a joint venture with another bidder/s), other technical documents, post the performance security, and sign the contract.
16. Section 32 (Performance Security) limits the acceptable form of performance security to bank guarantee, letter of credit, and surety bond.
c. Section 3. Bid Data Sheet
1. The Bid Data Sheet provides project specific information in relation to corresponding clauses in the ITB, such as, description of similar contracts, manner of submission of tax returns, and effectivity date of contract, among others.
d. Section 4 (General Conditions of Contract) and Section 5 (Special Conditions of Contract)
1. Possession of site shall be granted by the provincial government to the contractor on the date specified in the Contract.
2. The performance security posted by the contractor shall be valid until issuance by the Procuring Entity of the Certificate of Final Acceptance.
3. The GCC and SCC reiterate that sub-contracting of any portion of the works is not allowed.
4. Should the contract not be completed as scheduled, the contractor shall pay liquidated damages (LD) for every day of delay using the new rate of one tenth of one percent of the cost of the unperformed portion for each day the completion date is delayed. Further, the total amount of LD shall not exceed the amount of 10% of the contract price.
5. A warranty against structural defects and failures shall remain effective for one year from the date of issuance of the Certificate of Final Acceptance. The contractor shall post a warranty security also in the form acceptable to the Procuring Entity, i.e., bank guarantee, letter of credit or surety bond.
6. A mobilization payment amounting to a maximum of 15% of the contract price may be granted to the contractor upon its written request and submission of a security of equivalent amount. The mobilization payment shall be granted in lump sum and shall be recouped by deducting 15% from the progress payments.
7. The contractor may submit a request for first progress payment once its accomplishment has reached at least 20%, as certified by the Procuring Entity’s representative.
8. AusAID/PRMF grant funds shall not be used to pay for any GOP taxes. Taxes shall be paid using the provincial government’s counterpart funds.
9. Progress payments are subject to retention money of 10% until 50% of the value of the works has been completed. If after 50% completion the works is satisfactorily done and on schedule, no additional retention shall be made. Otherwise, the 10% retention shall be continued. The total retention money shall be due for release upon final acceptance of the works.
10. The works involved are relatively simple that the Procuring Entity does not expect a considerable number of variation orders to be implemented. However, should there be a need to implement change orders/extra work /variation orders as recommended by the Procuring Entity’s representative, the cumulative amount should not exceed 10% of the original contract price.
11. The GCC and SCC reiterate that price adjustment is not allowed.
12. Engr. Ravanes explained that the Deed of Novation is a requirement of AusAID to be part of the Bidding Documents, specifically as a sub-contract among the contractor, the Procuring Entity/FMC and the concerned Provincial Government. Appendix 1 of the Deed of Novation provides that the aforementioned three parties agree that the Procuring Entity/FMC may novate the contract to the Provincial Government upon issuance of the Notice of Substitution. This means that all responsibilities of the Procuring Entity in its contract with the contractor have been transferred to the Provincial Government. Appendix 2 of the Deed of Novation allows the Procuring Entity to take back the responsibilities from the Provincial Government should there be problems in the management of the contract, such as but not limited to delayed payments to and deteriorating performance of the contractor. For the First Year Priority Works Program, Engr. Ravanes informed the bidders that there will be no novation applied because of the short contract duration. Novation may be applied for multi-year contracts such as the provincial road maintenance contract that will be bid out sometime second half of this year.
e. Section 6. Specifications
1. The Section provides a set of precise and clear specifications that will enable the bidders to competitively prepare bids that will be responsive to the requirements of the Procuring Entity. Engr. Ravanes stated that the DPWH Blue Book, 2004 version was followed by the design consultants in coming up with the standards of workmanship, quality of materials, and performance of goods to be procured.
f. Section 7. Drawings
1. The drawings provide, among others, the location and vicinity map of the Project, the cross section, plan and profile of the roadways, the cross section and standards for drainage, and details for the miscellaneous and concrete works.
g. Section 8. Bill of Quantities (BOQ)
1. The quantities or volume of the work to be done are itemized in the BOQ. The bidder shall submit a priced BOQ as part of its financial bid documents. Engr. Ravanes clarified that the quantities in the BOQ are estimates and are given as basis for bid evaluation. Payment, however, shall be based on the actual quantities of work accomplished by the contractor as verified by the Procuring Entity’s representative.
h. Section 9. Bidding Forms
1. The Bid Form is the proposal of the contractor offering to do work in accordance with the provisions stated in the Bidding Documents at a cost equal to its bid price. Other items stated in the Bid Form are, among others, the bid validity period, commitment to obtain a performance security and an assurance to the Procuring Entity that it is submitting just one (1) bid.
2. Should the contractor be successful in obtaining an award, the Form of Contract Agreement shall be filled up by the two parties, the contractor and the Procuring Entity/FMC. The Contract Agreement states the final contract price agreed upon by the Procuring Entity and the contractor for the execution of works in conformity with the provisions of the contract.
3. The Omnibus Sworn Statement provides for certain responsibilities the bidder commits to undertake or is aware of. Noteworthy is the prohibition on relations between the bidder with any staff of the Procuring Entity and the concerned Provincial Government up to the fourth degree of consanguinity and affinity.
7. Engr. Ravanes informed the body that all the major activities/milestones shall be conducted in the PRMF Office in Makati, i.e., the PBC, bid submission, opening and evaluation. He also mentioned that contract signing may also be done in the same Office.
8. Engr. Ravanes informed the bidders of the issuance of Bid Bulletin No. 1 for the Project. AusAID informed the FMC that construction of toilet facilities shall no longer be covered under Package 1B. Bid Bulletin No. 1 therefore clarifies that any reference to construction of toilet facilities under Package 1B should be disregarded. Copies of Bid Bulletin No. 1 were provided to the bidders who were also informed that said Bulletin shall be posted in the PRMF and Provincial Government websites.
9. Since almost all the bidders present also bought CDs/Bidding Documents for PRMF-BOH-02 (Danao-Jct (LIR) Mahayag Road), Engr. Ravanes also informed them of the issuance of Bid Bulletin No. 1 for the said Project, which states that construction of toilet facilities shall no longer be covered under Package 3B and that any reference thereto should be disregarded. Copies of Bid Bulletin No. 1 were similarly provided to the bidders.
OPEN FORUM
10. Engr. Ravanes informed the bidders that the BAC did not receive any request for clarifications regarding the Project. He encouraged the bidders to raise any issues they wish to be clarified on, not only for the PRMF-BOH-01 Project but also for the PRMF-BOH-02 Project. This was suggested by the BAC so that the bidders do not have to come back for the PBC scheduled at 1:30 pm as they have already raised their concerns.
11. Attendance in Pre-Bid Conference. It was asked if companies that did not attend the PBC can still participate in the bidding. It was explained that attendance to the PBC is optional but only companies that bought CDs/Bidding Documents can attend the PBC.
12. Sale of Bidding Documents. A bidder inquired on the cut-off date for buying the CD/Bidding Documents. The BAC replied that the deadline for purchase of the CD/bidding documents was on 11 March 2010.
13. Contractor’s Performance Evaluation System (CPES). On the observation that the CPES is not required from the bidders, it was pointed out that Sec. 12.1.iii.13 of the ITB requires the submission of the CPES rating sheet, among others, to show proof that the contractor finished its work satisfactorily.
14. Contract Duration. A bidder inquired if the 120 calendar-days contract duration can be extended due to adverse weather conditions. The BAC clarified that the contract duration already includes allowance for inclement weather. A Bid Bulletin shall be issued to inform the bidders of the estimated number of unworkable days for the Bohol projects as well as the rest of the 17 contracts. For the province of Bohol, the rainy season is expected to start in May 2010.
15. Right of Way and Other Clearing Disputes. On the query about problems on right of way, Engr. Regino clarified that the projects are for rehabilitation and do not include acquisition of right of way. Some portions of the provincial road may involve widening but it is within the road right of way.
16. Tree Replanting. Engr. Regino explained that the contractors are required to plant ten (10) trees for every tree they have to cut in connection with the road project. This requirement can be seen in the corresponding pay item in the Bill of Quantities.
17. Weak Wooden Bridge in San Isidro-Catigbian Road. A bidder pointed out that the wooden bridge in the San Isidro-Catigbian segment cannot carry heavy loads. This will impinge the transfer of equipment from one side of the bridge to the other. Engr. Regino clarified that the road section can be accessed from other directions. The time frame also indicates the need to have two sets of equipments working on the opposite sides of the bridge.
18. Taxes. A bidder informed the BAC that local contractor’s billings are subjected to 2% withholding tax and 5% VAT. It was asked if the same applies to the PRMF projects. The BAC clarified that AusAID fund cannot be used to pay for local taxes. Anything related to taxes shall be covered by the local government counterpart probably through tax credit.
19. Billing. A bidder requested an explanation on how the billing/request for progress payment shall be processed. The BAC explained that the billing will have to be reviewed by the construction supervision consultants before it is submitted to FMC for processing. Billings need to have two original vouchers. The first voucher will be used by the FMC while the other will be forwarded (by FMC) to the provincial government. The FMC will release payment of the bill excluding payment for taxes. The remaining balance will be collected from the province, probably through tax credit. It was further explained that the bidding documents specified a 30-day payment processing. FMC will try to release payments in a shorter period (within two weeks).
20. COA Audit. It was asked if COA will do pre-auditing on the project. The concern was raised that if the MSA requires payment of billed works within a 30-day period, COA inspection/audit, because of limited personnel, may take more than a month making it difficult for the provincial government to comply with the MSA requirements. It was also asked if COA opinions/comments such as overpricing will not affect the billing submitted to FMC. It is the affirmation of the construction supervision consultants of the accomplishments claimed by the contractor that will matter in the release of payment.
21. Engr. Regino informed the bidders that should they have further queries/requests for clarifications, they can still submit requests for clarifications which should be received by the BAC on or before 05 March 2010, or ten days before the deadline for submission of bids.
There being no other matters to discuss, the PBC was adjourned at around 11:00 am.
Prepared by:

ANANIAS E. FERNANDEZ, JR.
Procurement and Contracts Officer

Noted by:


CIPRIANO A. RAVANES, JR.
PRMF-BAC Chairperson

I. A - 155
Asphalting of Aguinaldo Street to Inabanga Catholic Church, Inabanga, Bohol: L = 107.5m ; W = 4.0m
ABC: 448,993.32
Project Duration: 6 Calendar Days
Cost of Documents: P 500.00

II. A - 156
Asphalting of Poblacion, Talibon, San Francisco Road: L = 935m; W = 4.0m
ABC: 3,421,476.91
Project Duration: 21 Calendar Days
Cost of Documents: P 2,000.00

III. A - 157
Delivery of Item 200 at Carlos P. Garcia Oval, Tagbilaran City: 405 CU.M.
ABC: 121,500.00
Project Duration: 10 Calendar Days
Cost of Documents: P 500.00

IV. A - 160
Concreting of Road Leading to Ubay Science High School, Ubay, Bohol: L = 202.6m; W=3.0m
ABC: 636,665.00
Project Duration: 12 Calendar Days
Cost of Documents: P 500.00

V. A - 161
Supply and Application of Soil Stabilizer at Poblacion Talibon, San Isidro Road, Talibon, Bohol: L = 1,500m; W = 5.0m
ABC: 1,387,500.00
Project Duration: 30 Calendar Days
Cost of Documents: P 500.00
More...

More...