GPPB Resolution No. 03-2006 has amended the GPPB Guidelines on Extension of Contracts for General Services earlier issued by the GPPB in CY2005. Under the previous Guidelines, procuring entities are allowed to extend its existing contracts for general services on a periodic month-to-month basis but not to exceed 2 months, unless otherwise approved by the GPPB. Several requests for approval of contract extension have been received by the GPPB for its consideration and approval, and many more are expected to follow. To give the procuring entities more flexibility in their operations, the GPPB agreed to extend the allowable period for contract extension as provided in the Guidelines from 2 months to 6 months, and still require approval of the GPPB for contract extension beyond 6 months.

For goods procurement through shopping where unforeseen contingency requires immediate purchase and with amounts not exceeding P50,000, GPPB Resolution No. 05-2006 exempts suppliers of these goods from posting a performance security provided that the goods procured shall be delivered upon purchase. The immediate compliance of the supplier’s obligation to deliver or perform renders the posting of a performance security hardly practicable.

GPPB Resolution No. 04-2006 is endorsing for the approval of the President an amendment to the IRR/GPRA that would provide procedures for small value procurement of goods, infrastructure projects, and consulting services.

Small value procurements usually do not require all the formalities of a bidding process and should instead follow a more simplified procurement procedure for expediency and efficiency. The section on the alternative method of negotiated procurement is proposed to be amended to include another case involving procurement amounting to P50,000 and below, provided that the procurement does not result in splitting of contracts and does not fall under shopping of readily available off-the-shelf goods or ordinary/regular equipment. In this case, the procuring entity shall draw up a list of at least 3 suppliers, contractors, or consultants of known qualifications that will be invited to submit proposals in case of goods and infrastructure projects, or curriculum vitae, in case of consulting services.

GPPB Resolution No. 07-2006 likewise seeks approval of the President of an amendment to the IRR/GPRA on the eligibility requirement on the largest single similar contract completed for procurement of goods. The present requirement of having completed a similar contract having a value of at least 50% of the approved budget of the contract being bid out has been observed to be prejudicial under certain conditions to the principles of open competition, and efficiency and effectiveness in the procurement process. These have led to failures of bidding and opportunities for monopolies. The proposed amendment provides that when failure of bidding has resulted because no single bidder has complied with the above requirement for a completed similar contract, or imposing same requirement will likely result to a monopoly that will defeat the purpose of public bidding, the procuring entity may instead require the prospective bidder to have completed at least 3 similar contracts having an aggregate contract amount equal to at least 50% of the ABC, with the largest of these similar contracts equal to at least 25% of the ABC. Further, the prospective bidder must have been in existence for at least 3 consecutive years prior to the advertisement. The proposed amendment also provides that when the item to be procured is novel or its procurement is unprecedented or is unusual, prospective bidders will only have to comply with the requirement that they have been in existence for at least 3 consecutive years prior to the bidding.