Procurement of Goods: Hilippine Idding Ocuments
Procurement of Goods: Hilippine Idding Ocuments
Procurement of Goods: Hilippine Idding Ocuments
Procurement of
GOODS
Government of the Republic of the Philippines
Third Edition
October 2009
Preface
These Philippine Bidding Documents (PBDs) for the procurement of Goods through
Competitive Bidding have been prepared by the Government of the Philippines (GOP) for
use by all branches, agencies, departments, bureaus, offices, or instrumentalities of the
government, including government-owned and/or -controlled corporations (GOCCs),
government financial institutions (GFIs), state universities and colleges (SUCs), and local
government units (LGUs). The procedures and practices presented in this document have
been developed through broad experience, and are for mandatory1 use in projects that are
financed in whole or in part by the GOP or any foreign government/foreign or international
financing institution in accordance with the provisions of the Implementing Rules and
Regulations (IRR) of Republic Act (RA) 9184.
The Bidding Documents shall clearly and adequately define, among others: (a) the
objectives, scope, and expected outputs and/or results of the proposed contract; (b) the
eligibility requirements of bidders, such as track record to be determined by the Head of the
Procuring Entity; (c) the expected contract duration, the estimated quantity in the case of
procurement of goods, delivery schedule and/or time frame; and (d) the obligations, duties,
and/or functions of the winning bidder.
In order to simplify the preparation of the Bidding Documents for each procurement,
the PBDs groups the provisions that are intended to be used unchanged in Section II.
Instructions to Bidders (ITB) and in Section IV. General Conditions of Contract (GCC). Data
and provisions specific to each procurement and contract should be included in Section III.
Bid Data Sheet (BDS); Section V. Special Conditions of Contract (SCC); Section VI.
Schedule of Requirements; and Section VII. Technical Specifications. The forms to be used
are provided in Section VIII. Bidding Forms.
Care should be taken to check the relevance of the provisions of the PBDs against the
requirements of the specific Goods to be procured. In addition, each section is prepared with
notes intended only as information for the Procuring Entity or the person drafting the Bidding
Documents. They shall not be included in the final documents, except for the notes
introducing Section VIII. Bidding Forms where the information is useful for the Bidder. The
following general directions should be observed when using the documents:
(a) All the documents listed in the Table of Contents are normally required for the
procurement of Goods. However, they should be adapted as necessary to the
circumstances of the particular Project.
(b) Specific details, such as the name of the Procuring Entity and address for bid
submission, should be furnished in the ITB, BDS, and SCC. The final
documents should contain neither blank spaces nor options.
(c) This Preface and the footnotes or notes in italics included in the Invitation to
Bid, BDS, SCC, Schedule of Requirements, and Specifications are not part of
1 Unless the Treaty or International or Executive Agreement expressly provides use of foreign
government/foreign or international financing institution procurement procedures and guidelines.
2
the text of the final document, although they contain instructions that the
Procuring Entity should strictly follow. The Bidding Documents should
contain no footnotes except Section VIII. Bidding Forms since these provide
important guidance to Bidders.
(d) The cover should be modified as required to identify the Bidding Documents
as to the names of the Project, Contract, and Procuring Entity, in addition to
date of issue.
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TABLE OF CONTENTS
(a) Advertised at least once in a newspaper of general nationwide circulation which has
been regularly published for at least two (2) years before the date of issue of the
advertisement, subject to Sections 21.2.2 of the IRR of RA 9184;
(c) Posted at any conspicuous place reserved for this purpose in the premises of the
Procuring Entity concerned for a minimum period of seven (7) calendar days, as
certified by the head of the Bids and Awards Committee (BAC) Secretariat of the
Procuring Entity concerned.
Apart from the essential items listed in the Bidding Documents, the Invitation to Bid
should also indicate the following:
(a) The date of availability of the Bidding Documents, which shall be from the time
the Invitation to Bid is first advertised/posted until the deadline for the submission
and receipt of bids;
(b) The place where the Bidding Documents may be purchased or the website where it
may be downloaded;
(c) The deadline for the submission and receipt of bids from the last day of posting of
the Invitation to Bid; and
(d) Any important bid evaluation criteria (e.g., the application of a margin of
preference in bid evaluation).
The Invitation to Bid should be incorporated into the Bidding Documents. The
information contained in the Invitation to Bid must conform to the Bidding Documents and
in particular to the relevant information in the BDS.
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[Letterhead of the Procuring Entity]
1. Select one of the two following paragraphs, and delete the other depending on the
Funding Source:
The [insert name of Procuring Entity], through the [insert source of funding and
year]2 intends to apply the sum of [insert the approved budget for the contract]
being the Approved Budget for the Contract (ABC) to payments under the contract
for [insert name/no. of contract]. Bids received in excess of the ABC shall be
automatically rejected at bid opening.
2. The [insert name of Procuring Entity] now invites bids for [insert brief description of
Goods to be procured].3 Delivery of the Goods is required [insert the required delivery
date or expected contract duration]. Bidders should have completed, within [insert relevant
period] from the date of submission and receipt of bids, a contract similar to the Project.
The description of an eligible bidder is contained in the Bidding Documents, particularly, in
Section II. Instructions to Bidders.
3. Select one of the following two paragraphs, and delete the other depending on the
Funding Source:
2 In the case of National Government Agencies, the General Appropriations Act and/or continuing
appropriations; in the case of GOCCs, GFIs, and SUCs, the Corporate Budget for the contract approved by the
governing Boards; in the case of (LGUs, the Budget for the contract approved by the respective Sanggunian.
(Section 5(a), R.A. 9184)
3 A brief description of the type(s) of Goods should be provided, including quantities, location of project, and
other information necessary to enable potential bidders to decide whether or not to respond to the invitation.
6
In addition, select one of the two following paragraphs and delete the other
depending on the existence of conditions under Section 23.5.1.2 of the IRR of RA
9184:
(i) Select this paragraph if conditions (a), (c), and (d) under Section 23.5.1.2 of the
IRR of RA 9184 do not exist: Bidding is restricted to Filipino citizens/sole
proprietorships, partnerships, or organizations with at least sixty percent (60%)
interest or outstanding capital stock belonging to citizens of the Philippines, and to
citizens or organizations of a country the laws or regulations of which grant similar
rights or privileges to Filipino citizens, pursuant to RA 5183 and subject to
Commonwealth Act 138.
(ii) Select this paragraph if condition (a), (c), or (d) under Section 23.5.1.2 of the IRR
of RA 9184 exists: Bidding is open to all interested bidders, whether local or
foreign, subject to the conditions for eligibility provided in the IRR of RA 9184.
4. Interested bidders may obtain further information from [insert name of the Procuring
Entity] and inspect the Bidding Documents at the address given below during [insert office
hours].
5. Select one of the following two paragraphs, and delete the other depending on the
Funding Source:
It may also be downloaded free of charge from the website of the Philippine
Government Electronic Procurement System (PhilGEPS) and the website of the
Procuring Entity, provided that Bidders shall pay the nonrefundable fee for the
Bidding Documents not later than the submission of their bids.
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A complete set of Bidding Documents may be purchased by interested Bidders on
[insert date of availability of Bidding Documents] from the address below and upon
payment of a nonrefundable fee for the Bidding Documents in the amount of [insert
amount in Pesos].
It may also be downloaded free of charge from the website of the Philippine
Government Electronic Procurement System (PhilGEPS), the website of the
Procuring Entity, and [insert the website as required by the foreign
government/foreign or international financing institution], provided that Bidders
shall pay the nonrefundable fee for the Bidding Documents not later than the
submission of their bids.
6. Select one of the following two paragraphs, and delete the other: 4
a) If the Procuring Entity intends to open the Pre-Bid Conference to all interested
Bidders:
The [insert name of the Procuring Entity] will hold a Pre-Bid Conference on [insert
time and date] at [insert address for Pre-Bid Conference, if applicable], which shall be
open to all interested parties.
b) If the Procuring Entity intends to limit the Pre-Bid Conference to Bidders who have
purchased the Bidding Documents:
The [insert name of the Procuring Entity] will hold a Pre-Bid Conference on [insert
time and date] at [insert address for Pre-Bid Conference, if applicable], which shall be
open only to all interested parties who have purchased the Bidding Documents.
7. Bids must be delivered to the address below on or before [insert time and date]. All Bids
must be accompanied by a bid security in any of the acceptable forms and in the amount
stated in ITB Clause 18.
Bid opening shall be on [insert time and date] at [insert address for Bid opening]. Bids
will be opened in the presence of the Bidders’ representatives who choose to attend at the
address below. Late bids shall not be accepted.
8. [Insert such other necessary information deemed relevant by the PROCURING ENTITY]
9. The [insert name of the Procuring Entity] reserves the right to accept or reject any bid, to
annul the bidding process, and to reject all bids at any time prior to contract award,
without thereby incurring any liability to the affected bidder or bidders.
4 May be deleted in case the ABC is less than One Million Pesos (PhP1,000,000) where the Procuring Entity
may not hold a pre-bid conference.
8
[Insert postal address] and/or [Insert street address]
[Insert telephone number, indicate city code]
[Insert contact’s email address]
[Insert facsimile number]
[Insert website address, if applicable]
_________________________________
[Insert Name and Signature of the BAC
Chairperson or the Authorized
Representative of the BAC Chairperson]
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Section II. Instructions to Bidders
Section II contains provisions that are to be used unchanged. Section III consists of
provisions that supplement, amend, or specify in detail, information or requirements
included in Section II which are specific to each procurement.
Matters governing performance of the Bidder, payments, or those affecting the risks,
rights, and obligations of the parties under the contract are not normally included in this
section, but rather under Section IV. General Conditions of Contract, and/or Section V.
Special Conditions of Contract. If duplication of a subject is inevitable in the other
sections of the document prepared by the Procuring Entity, care must be exercised to avoid
contradictions between clauses dealing with the same matter.
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TABLE OF CONTENTS
A. GENERAL ........................................................................................................ 14
1. Scope of Bid ............................................................................................................. 14
2. Source of Funds ........................................................................................................ 14
3. Corrupt, Fraudulent, Collusive, and Coercive Practices .......................................... 14
4. Conflict of Interest ................................................................................................... 15
5. Eligible Bidders ........................................................................................................ 16
6. Bidder’s Responsibilities.......................................................................................... 18
7. Origin of Goods ........................................................................................................ 19
8. Subcontracts ............................................................................................................. 19
B. CONTENTS OF BIDDING DOCUMENTS .............................................................. 20
9. Pre-Bid Conference .................................................................................................. 20
10. Clarification and Amendment of Bidding Documents ............................................. 20
C. PREPARATION OF BIDS .................................................................................... 21
11. Language of Bid ....................................................................................................... 21
12. Documents Comprising the Bid: Eligibility and Technical Components ................ 21
13. Documents Comprising the Bid: Financial Component .......................................... 22
14. Alternative Bids........................................................................................................ 23
15. Bid Prices ................................................................................................................. 23
16. Bid Currencies .......................................................................................................... 24
17. Bid Validity .............................................................................................................. 25
18. Bid Security .............................................................................................................. 25
19. Format and Signing of Bids ..................................................................................... 26
20. Sealing and Marking of Bids .................................................................................... 27
D. SUBMISSION AND OPENING OF BIDS ................................................................ 28
21. Deadline for Submission of Bids ............................................................................. 28
22. Late Bids .................................................................................................................. 28
23. Modification and Withdrawal of Bids ...................................................................... 28
24. Opening and Preliminary Examination of Bids ....................................................... 28
E. EVALUATION AND COMPARISON OF BIDS ....................................................... 30
25. Process to be Confidential ........................................................................................ 30
26. Clarification of Bids ................................................................................................. 30
27. Domestic Preference ................................................................................................ 30
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28. Detailed Evaluation and Comparison of Bids .......................................................... 31
29. Post-Qualification..................................................................................................... 32
30. Reservation Clause ................................................................................................... 33
F. AWARD OF CONTRACT .................................................................................... 34
31. Contract Award ........................................................................................................ 34
32. Signing of the Contract ............................................................................................ 35
33. Performance Security ............................................................................................... 35
34. Notice to Proceed ..................................................................................................... 36
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A. General
1. Scope of Bid
The procuring entity named in the BDS (hereinafter referred to as the
“Procuring Entity”) wishes to receive bids for supply and delivery of the
goods as described in Section VII. Technical Specifications (hereinafter
referred to as the “Goods”).
The name, identification, and number of lots specific to this bidding are
provided in the BDS. The contracting strategy and basis of evaluation of lots
is described in ITB Clause 28.
2. Source of Funds
The Procuring Entity has a budget or has applied for or received funds from the
Funding Source named in the BDS, and in the amount indicated in the BDS. It intends
to apply part of the funds received for the Project, as defined in the BDS, to cover
eligible payments under the contract.
(a) defines, for purposes of this provision, the terms set forth below as
follows:
(b) will reject a proposal for award if it determines that the Bidder
recommended for award has engaged in any of the practices mentioned
in this Clause for purposes of competing for the contract.
Further, the Procuring Entity will seek to impose the maximum civil,
administrative, and/or criminal penalties available under applicable laws on
individuals and organizations deemed to be involved in any of the practices
mentioned in ITB Clause 3.1(a).
Furthermore, the Funding Source and the Procuring Entity reserve the right to
inspect and audit records and accounts of a bidder or supplier in the bidding
for and performance of a contract themselves or through independent auditors
as reflected in the GCC Clause 3.
4. Conflict of Interest
All Bidders found to have conflicting interests shall be disqualified to
participate in the procurement at hand, without prejudice to the imposition of
appropriate administrative, civil, and criminal sanctions. A Bidder may be
considered to have conflicting interests with another Bidder in any of the
events described in paragraphs (a) through (c) below and a general conflict of
interest in any of the circumstances set out in paragraphs (d) through (f)
below:
(b) A Bidder receives or has received any direct or indirect subsidy from
any other Bidder;
(c) A Bidder has the same legal representative as that of another Bidder
for purposes of this bid;
(d) A Bidder has a relationship, directly or through third parties, that puts
them in a position to have access to information about or influence on
the bid of another Bidder or influence the decisions of the Procuring
Entity regarding this bidding process. This will include a firm or an
organization who lends, or temporarily seconds, its personnel to firms
or organizations which are engaged in consulting services for the
preparation related to procurement for or implementation of the project
if the personnel would be involved in any capacity on the same project;
(e) A Bidder submits more than one bid in this bidding process. However,
this does not limit the participation of subcontractors in more than one
bid; or
(d) If the Bidder is a joint venture (JV), the provisions of items (a), (b), or
(c) of this Clause shall correspondingly apply to each of the members
of the said JV, as may be appropriate.
5. Eligible Bidders
Unless otherwise indicated in the BDS, the following persons shall be eligible
to participate in this bidding:
(b) 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;
(c) 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;
(d) Cooperatives 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; and
(e) Persons/entities forming themselves into a JV, i.e., a group of two (2)
or more persons/entities that intend to be jointly and severally
responsible or liable for a particular contract: Provided, however, that
Filipino ownership or interest of the joint venture concerned shall be at
least sixty percent (60%).
(c) When the Goods sought to be procured are not available from local
suppliers; or
Unless otherwise provided in the BDS, the Bidder must have completed at
least one contract similar to the Project the value of which, adjusted to current
prices using the National Statistics Office consumer price index, must be at
least equivalent to a percentage of the ABC stated in the BDS.
For this purpose, contracts similar to the Project shall be those described in the
BDS, and completed within the relevant period stated in the Invitation to Bid
and ITB Clause 12.1(a)(iii).
Unless otherwise provided in the BDS, the Bidder must submit a computation
of its Net Financial Contracting Capacity (NFCC) or a commitment from a
Universal or Commercial Bank to extend a credit line in its favor if awarded
the contract for this Project (CLC).
The NFCC, computed using the following formula, must be at least equal to
the ABC to be bid:
NFCC = [(Current assets minus current liabilities) (K)] minus the value of
all outstanding or uncompleted portions of the projects under ongoing
contracts, including awarded contracts yet to be started coinciding with the
contract for this Project.
Where:
The CLC must be at least equal to ten percent (10%) of the ABC for this
Project. If issued by a foreign bank, it shall be confirmed or authenticated by a
Universal or Commercial Bank. In the case of local government units (LGUs),
the Bidder may also submit CLC from other banks certified by the Bangko
Sentral ng Pilipinas (BSP) as authorized to issue such financial instrument.
6. Bidder’s Responsibilities
The Bidder or its duly authorized representative shall submit a sworn
statement in the form prescribed in Section VIII. Bidding Forms as required in
ITB Clause 12.1(b)(iii).
(c) Having made an estimate of the facilities available and needed for the
contract to be bid, if any;
(e) Ensuring that it is not “blacklisted” or barred from bidding by the GOP
or any of its agencies, offices, corporations, or LGUs, including
foreign government/foreign or international financing institution whose
blacklisting rules have been recognized by the GPPB;
(g) Authorizing the Head of the Procuring Entity or its duly authorized
representative/s to verify all the documents submitted;
(h) Ensuring that the signatory is the duly authorized representative of the
Bidder, and granted full power and authority to do, execute and
perform any and all acts necessary and/or to represent the Bidder in the
bidding, with the duly notarized Secretary’s Certificate attesting to
such fact, if the Bidder is a corporation, partnership, cooperative, or
joint venture;
(i) Complying with the disclosure provision under Section 47 of RA 9184
in relation to other provisions of RA 3019; and
(j) Complying with existing labor laws and standards, in the case of
procurement of services.
Failure to observe any of the above responsibilities shall be at the risk of the
Bidder concerned.
It shall be the sole responsibility of the 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: (a) the location and the nature
of this Project; (b) climatic conditions; (c) transportation facilities; and (d)
other factors that may affect the cost, duration, and execution or
implementation of this Project.
The Procuring Entity shall not assume any responsibility regarding erroneous
interpretations or conclusions by the prospective or eligible bidder out of the
data furnished by the procuring entity.
The Bidder shall bear all costs associated with the preparation and submission
of his bid, and the Procuring Entity will in no case be responsible or liable for
those costs, regardless of the conduct or outcome of the bidding process.
Before submitting their bids, the Bidder is deemed to have become familiar
with all existing laws, decrees, ordinances, acts and regulations of the
Philippines which may affect this Project in any way.
The Bidder should note that the Procuring Entity will accept bids only from
those that have paid the nonrefundable fee for the Bidding Documents at the
office indicated in the Invitation to Bid.
7. Origin of Goods
Unless otherwise indicated in the BDS, there is no restriction on the origin of goods
other than those prohibited by a decision of the United Nations Security Council taken
under Chapter VII of the Charter of the United Nations, subject to ITB Clause 27.1.
8. Subcontracts
Unless otherwise specified in the BDS, the Bidder may subcontract portions of
the Goods to an extent as may be approved by the Procuring Entity and stated
in the BDS. However, subcontracting of any portion shall not relieve the
Bidder from any liability or obligation that may arise from the contract for this
Project.
Subcontractors must comply with the eligibility criteria and the documentary
requirements specified in the BDS. In the event that any subcontractor is
found by the Procuring Entity to be ineligible, the subcontracting of such
portion of the Goods shall be disallowed.
The Bidder may identify the subcontractor to whom a portion of the Goods
will be subcontracted at any stage of the bidding process or during contract
implementation. If the Bidder opts to disclose the name of the subcontractor
during bid submission, the Bidder shall include the required documents as part
of the technical component of its bid.
Bidders are encouraged to attend the pre-bid conference to ensure that they
fully understand the Procuring Entity’s requirements. Non-attendance of the
Bidder will in no way prejudice its bid; however, the Bidder is expected to
know the changes and/or amendments to the Bidding Documents discussed
during the pre-bid conference.
Any statement made at the pre-bid conference shall not modify the terms of
the Bidding Documents unless such statement is specifically identified in
writing as an amendment thereto and issued as a Supplemental/Bid Bulletin.
Any Supplemental/Bid Bulletin issued by the BAC shall also be posted on the
Philippine Government Electronic Procurement System (PhilGEPS) and the
website of the Procuring Entity concerned, if available. It shall be the
responsibility of all Bidders who secure the Bidding Documents to inquire and
secure Supplemental/Bid Bulletins that may be issued by the BAC. However,
Bidders who have submitted bids before the issuance of the Supplemental/Bid
Bulletin must be informed and allowed to modify or withdraw their bids in
accordance with ITB Clause 23.
C. Preparation of Bids
11. Language of Bid
The bid, as well as all correspondence and documents relating to the bid exchanged
by the Bidder and the Procuring Entity, shall be written in English. Supporting
documents and printed literature furnished by the Bidder may be in another language
provided they are accompanied by an accurate translation in English certified by the
appropriate embassy or consulate in the Philippines, in which case the English
translation shall govern for purposes of interpretation of the bid.
(i) Bid security in accordance with ITB Clause 18. If the Bidder
opts to submit the bid security in the form of:
(a) Financial Bid Form, which includes bid prices and the bill of quantities
and the applicable Price Schedules, in accordance with ITB Clauses
15.1 and 15.4;
The Bidder shall fill in rates and prices for all items of the Goods described in
the Bill of Quantities. Bids not addressing or providing all of the required
items in the Bidding Documents including, where applicable, Bill of
Quantities, shall be considered non-responsive and, thus, automatically
disqualified. In this regard, where a required item is provided, but no price is
indicated, the same shall be considered as non-responsive, but specifying a "0"
(zero) for the said item would mean that it is being offered for free to the
Government.
The terms Ex Works (EXW), Cost, Insurance and Freight (CIF), Cost and
Insurance Paid to (CIP), Delivered Duty Paid (DDP), and other trade terms
used to describe the obligations of the parties, shall be governed by the rules
prescribed in the current edition of the International Commercial Terms
(INCOTERMS) published by the International Chamber of Commerce, Paris.
(a) For Goods offered from within the Procuring Entity’s country:
(i) The price of the Goods quoted EXW (ex works, ex factory, ex
warehouse, ex showroom, or off-the-shelf, as applicable),
including all customs duties and sales and other taxes already
paid or payable:
(i) Unless otherwise stated in the BDS, the price of the Goods
shall be quoted DDP with the place of destination in the
Philippines as specified in the BDS. In quoting the price, the
Bidder shall be free to use transportation through carriers
registered in any eligible country. Similarly, the Bidder may
obtain insurance services from any eligible source country.
Prices quoted by the Bidder shall be fixed during the Bidder’s performance of
the contract and not subject to variation or price escalation on any account,
unless otherwise specified in the BDS. A bid submitted with an adjustable
price quotation shall be treated as non-responsive and shall be rejected,
pursuant to ITB Clause 24.
All bid prices shall be considered as fixed prices, and therefore not subject to
price escalation during contract implementation, except under extraordinary
circumstances as indicated in the BDS and specified in the GCC and its
corresponding SCC provision.
(a) For Goods that the Bidder will supply from within the Philippines, the
prices shall be quoted in Philippine Pesos.
(b) For Goods that the Bidder will supply from outside the Philippines, the
prices may be quoted in the currency(ies) stated in the BDS. However,
for purposes of bid evaluation, bids denominated in foreign currencies
shall be converted to Philippine currency based on the exchange rate as
published in the BSP reference rate bulletin on the day of the bid
opening.
If so allowed in accordance with ITB Clause 16.1, the Procuring Entity for
purposes of bid evaluation and comparing the bid prices will convert the
amounts in various currencies in which the bid price is expressed to Philippine
Pesos at the foregoing exchange rates.
Unless otherwise specified in the BDS, payment of the contract price shall be
made in Philippine Pesos.
17. Bid Validity
Bids shall remain valid for the period specified in the BDS which shall not
exceed one hundred twenty (120) calendar days from the date of the opening
of bids.
For biddings conducted by LGUs, the Bidder may also submit bid securities in
the form of cashier’s/manager’s check, bank draft/guarantee, or irrevocable
letter of credit from other banks certified by the BSP as authorized to issue
such financial statement.
The bid security should be valid for the period specified in the BDS. Any bid
not accompanied by an acceptable bid security shall be rejected by the
Procuring Entity as non-responsive.
No bid securities shall be returned to bidders after the opening of bids and
before contract signing, except to those that failed or declared as post-
disqualified, upon submission of a written waiver of their right to file a motion
for reconsideration and/or protest. Without prejudice on its forfeiture, bid
securities shall be returned only after the bidder with the Lowest Calculated
and Responsive Bid 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 ITB Clause 18.2.
Upon signing and execution of the contract pursuant to ITB Clause 32, and the
posting of the performance security pursuant to ITB Clause 33, the successful
Bidder’s bid security will be discharged, but in no case later than the bid
security validity period as indicated in the ITB Clause 18.2.
(a) if a Bidder:
(i) withdraws its bid during the period of bid validity specified in
ITB Clause 17;
(ii) does not accept the correction of errors pursuant to ITB Clause
28.3(b);
(i) fails to sign the contract in accordance with ITB Clause 32;
The bid, except for unamended printed literature, shall be signed, and each and
every page thereof shall be initialed, by the duly authorized representative/s of
the Bidder.
Each copy of the first and second envelopes shall be similarly sealed duly
marking the inner envelopes as “COPY NO. ___ - TECHNICAL
COMPONENT” and “COPY NO. ___ – FINANCIAL COMPONENT” and
the outer envelope as “COPY NO. ___”, respectively. These envelopes
containing the original and the copies shall then be enclosed in one single
envelope.
The original and the number of copies of the Bid as indicated in the BDS shall
be typed or written in indelible ink and shall be signed by the bidder or its duly
authorized representative/s.
(b) bear the name and address of the Bidder in capital letters;
(d) bear the specific identification of this bidding process indicated in the
ITB Clause 1.2; and
(e) bear a warning “DO NOT OPEN BEFORE…” the date and time for
the opening of bids, in accordance with ITB Clause 21.
If bids are not sealed and marked as required, the Procuring Entity will assume
no responsibility for the misplacement or premature opening of the bid.
D. Submission and Opening of Bids
A Bidder may, through a Letter of Withdrawal, withdraw its bid after it has
been submitted, for valid and justifiable reason; provided that the Letter of
Withdrawal is received by the Procuring Entity prior to the deadline
prescribed for submission and receipt of bids.
No bid may be modified after the deadline for submission of bids. No bid may
be withdrawn in the interval between the deadline for submission of bids and
the expiration of the period of bid validity specified by the Bidder on the
Financial Bid Form. Withdrawal of a bid during this interval shall result in the
forfeiture of the Bidder’s bid security, pursuant to ITB Clause 18.5, and the
imposition of administrative, civil and criminal sanctions as prescribed by RA
9184 and its IRR.
Letters of withdrawal shall be read out and recorded during bid opening, and
the envelope containing the corresponding withdrawn bid shall be returned to
the Bidder unopened. If the withdrawing Bidder’s representative is in
attendance, the original bid and all copies thereof shall be returned to the
representative during the bid opening. If the representative is not in
attendance, the bid shall be returned unopened by registered mail. The Bidder
may withdraw its bid prior to the deadline for the submission and receipt of
bids, provided that the corresponding Letter of Withdrawal contains a valid
authorization requesting for such withdrawal, subject to appropriate
administrative sanctions.
A Bidder determined as “failed” has three (3) calendar days upon written
notice or, if present at the time of bid opening, upon verbal notification, within
which to file a request or motion for reconsideration with the BAC: Provided,
however, that the motion for reconsideration shall not be granted if it is
established that the finding of failure is due to the fault of the Bidder
concerned: Provided, further, that the BAC shall decide on the request for
reconsideration within seven (7) calendar days from receipt thereof. If a failed
Bidder signifies his intent to file a motion for reconsideration, the BAC shall
keep the bid envelopes of the said failed Bidder unopened and/or duly sealed
until such time that the motion for reconsideration or protest has been
resolved.
The Procuring Entity shall prepare the minutes of the proceedings of the bid
opening that shall include, as a minimum: (a) names of Bidders, their bid
price, bid security, findings of preliminary examination; and (b) attendance
sheet. The BAC members shall sign the abstract of bids as read.
(a) The preference shall be applied when (i) the lowest Foreign Bid is
lower than the lowest bid offered by a Domestic Bidder, or (ii) the
lowest bid offered by a non-Philippine national is lower than the
lowest bid offered by a Domestic Entity.
(b) For evaluation purposes, the lowest Foreign Bid or the bid offered by a
non-Philippine national shall be increased by fifteen percent (15%).
(c) In the event that (i) the lowest bid offered by a Domestic Entity does
not exceed the lowest Foreign Bid as increased, or (ii) the lowest bid
offered by a non-Philippine national as increased, then the Procuring
Entity shall award the contract to the Domestic Bidder/Entity at the
amount of the lowest Foreign Bid or the bid offered by a non-
Philippine national, as the case may be.
(d) If the Domestic Entity/Bidder refuses to accept the award of contract at
the amount of the Foreign Bid or bid offered by a non-Philippine
national within two (2) calendar days from receipt of written advice
from the BAC, the Procuring Entity shall award to the bidder offering
the Foreign Bid or the non-Philippine national, as the case may be,
subject to post-qualification and submission of all the documentary
requirements under these Bidding Documents.
(b) The ranking of the total bid prices as so calculated from the lowest to
the highest. The bid with the lowest price shall be identified as the
Lowest Calculated Bid.
(a) Completeness of the bid. Unless the ITB specifically allows partial
bids, bids not addressing or providing all of the required items in the
Schedule of Requirements including, where applicable, bill of
quantities, shall be considered non-responsive and, thus, automatically
disqualified. In this regard, where a required item is provided, but no
price is indicated, the same shall be considered as non-responsive, but
specifying a "0" (zero) for the said item would mean that it is being
offered for free to the Procuring Entity; and
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 ABC shall not be
considered.
29. Post-Qualification
The Procuring Entity shall determine to its satisfaction whether the Bidder that
is evaluated as having submitted the Lowest Calculated Bid (LCB) complies
with and is responsive to all the requirements and conditions specified in ITB
Clauses 5, 12, and 13.
Within a non-extendible period of three (3) calendar days from receipt by the
bidder of the notice from the BAC that it submitted the LCB, the Bidder shall
submit the following documentary requirements:
(b) Latest income and business tax returns in the form specified in the
BDS;
(d) Other appropriate licenses and permits required by law and stated in
the BDS.
Failure of the Bidder declared as Lowest Calculated Bid to duly submit the
requirements under this Clause or a finding against the veracity of such shall
be ground for forfeiture of the bid security and disqualification of the Bidder
for award.
If the BAC determines that the Bidder with the Lowest Calculated Bid passes
all the criteria for post-qualification, it shall declare the said bid as the Lowest
Calculated Responsive Bid, and recommend to the Head of the Procuring
Entity the award of contract to the said Bidder at its submitted price or its
calculated bid price, whichever is lower.
Within a period not exceeding seven (7) calendar days from the date of receipt
of the recommendation of the BAC, the Head of the Procuring Entity shall
approve or disapprove the said recommendation. In the case of GOCCs and
GFIs, the period provided herein shall be fifteen (15) calendar days.
Based on the following grounds, the Procuring Entity reserves the right to
reject any and all bids, declare a Failure of Bidding at any time prior to the
contract award, or not to award the contract, without thereby incurring any
liability, and make no assurance that a contract shall be entered into as a result
of the bidding:
(a) If there is prima facie evidence of collusion between appropriate public
officers or employees of the Procuring Entity, or between the BAC and
any of the bidders, or if the collusion is between or among the bidders
themselves, or between a bidder and a third party, including any act
which restricts, suppresses or nullifies or tends to restrict, suppress or
nullify competition;
(b) If the Procuring Entity’s BAC is found to have failed in following the
prescribed bidding procedures; or
(c) For any justifiable and reasonable ground where the award of the
contract will not redound to the benefit of the GOP as follows:
(iii) If the source of funds for the project has been withheld or
reduced through no fault of the Procuring Entity.
(c) All bids fail to comply with all the bid requirements or fail post-
qualification; or
(d) The bidder with the Lowest Calculated Responsive Bid (LCRB)
refuses, without justifiable cause to accept the award of contract, and
no award is made.
F. Award of Contract
31. Contract Award
Subject to ITB Clause 29, the Procuring Entity shall award the contract to the
Bidder whose bid has been determined to be the LCRB.
Prior to the expiration of the period of bid validity, the Procuring Entity shall
notify the successful Bidder in writing that its bid has been accepted, through a
Notice of Award received personally or sent by registered mail or
electronically, receipt of which must be confirmed in writing within two (2)
days by the Bidder with the LCRB and submitted personally or sent by
registered mail or electronically to the Procuring Entity.
Notwithstanding the issuance of the Notice of Award, award of contract shall
be subject to the following conditions:
(a) Submission of the valid JVA, if applicable, within ten (10) calendar
days from receipt by the Bidder of the notice from the BAC that the
Bidder has the LCRB;
(b) Posting of the performance security in accordance with ITB Clause 33;
At the time of contract award, the Procuring Entity shall not increase or
decrease the quantity of goods originally specified in Section VI. Schedule of
Requirements.
Within ten (10) calendar days from receipt of the Notice of Award, the
successful Bidder shall post the required performance security and sign and
date the contract and return it to the Procuring Entity.
The Procuring Entity shall enter into contract with the successful Bidder
within the same ten (10) calendar day period provided that all the documentary
requirements are complied with.
(c) Winning bidder’s bid, including the Technical and Financial Proposals,
and all other documents/statements submitted;
(g) Other contract documents that may be required by existing laws and/or
specified in the BDS.
The date of the Bidder’s receipt of the Notice to Proceed will be regarded as
the effective date of the contract, unless otherwise specified in the BDS.
Section III. Bid Data Sheet
The Procuring Entity should specify in the BDS information and requirements specific to
the circumstances of the Procuring Entity, the processing of the procurement, the
applicable rules regarding bid price and currency, and the bid evaluation criteria that will
apply to the bids. In preparing Section III, the following aspects should be checked:
[insert name]
The name of the Project is: [Insert the name of the project, or “Not
applicable”]
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Or
If the Funding Source is GOP, maintain the ITB Clause and insert any of
the following:
Or
Or
For procurement where the Procuring Entity has determined, after the
conduct of market research, that imposition of the provisions of Section
23.5.1.3 of the IRR of RA 9184 will likely result to failure of bidding or
monopoly that will defeat the purpose of public bidding: In view of the
determination by the Procuring Entity that imposition of the provisions
of Section 23.5.1.3 of the IRR of RA 9184 will likely result to [State
“failure of bidding” or “monopoly that will defeat the purpose of public
bidding”], the Bidder should comply with the following requirements:
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5.5 Select one, delete the other.
If the contract is funded by GOP, maintain the ITB Clause and state here:
No further instructions.
If the Funding Source is GOP, maintain the ITB Clause and state here: No
further instructions.
If the Funding Source is the ADB, JICA, or WB, state the following: Only
those Bids that omit the following documents will be automatically
rejected:
For all other omissions, the Procuring Entity reserves the right to seek
clarification of bids in accordance with ITB Clause 26 or at its sole
discretion, to reject the bid if the omission is regarded as a matter of
substance.
If the Funding Source is GOP, maintain the ITB Clause and state here: No
further instructions.
If the Funding Source is the ADB using Ordinary Capital or Special Funds
Resources: Eligible goods and services shall have their origin in eligible
source countries as described in Guidelines for Procurement Under Asian
Development Bank Loans and as described on Asian Development Bank’s
web page www.adb.org
If the Funding Source is the JICA: Eligible goods and services shall have
their origin in eligible source countries. In the event that the Goods offered
by the Bidder do not have their origin in eligible source countries the
contract will still be eligible for financing under JICA ODA Loans if the
combined costs of such Goods are less than fifty percent (50%) of the price
of the said contract.
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instructions”, or indicate the list of eligible source countries as origin of
Goods.
9.1 The Procuring Entity will hold a pre-bid conference for this Project on
[State date and time] at [State address of venue].
NOTE: The pre-bid conference shall be held at least twelve (12) calendar
days before the deadline for the submission of and receipt of bids. If the
Procuring Entity determines that, by reason of the method, nature, or
complexity of the contract to be bid, or when international participation
will be more advantageous to the GOP, a longer period for the preparation
of bids is necessary, the pre-bid conference shall be held at least thirty (30)
calendar days before the deadline for the submission and receipt of bids.
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(c) Audited Financial Statements;
If the Funding Source is JBIC, state the following: No eligibility check. All
documents described in ITB Clause 12.1 shall be included in the Technical
Proposal.
12.1(a)(i) List any additional acceptable proof of registration mentioned in the ITB
Clause or state “No other acceptable proof of registration is recognized.”
12.1(a)(iii) The statement of all ongoing and completed government and private
contracts shall include all such contracts within [state relevant period as
provided in the Invitation to Bid] prior to the deadline for the submission
and receipt of bids.
If the Funding Source is the GOP: The ABC is [insert amount]. Any bid
with a financial component exceeding this amount shall not be accepted.
15.4(a)(iii) List here the incidental services that are required as part of the Bidder’s
bid cross referencing to the technical specifications and SCC as
appropriate.
15.4(b) Maintain the ITB Clause and state here “Not applicable”, “The price of the
Goods shall be quoted DDP [state place of destination]”, or the applicable
INCOTERM for this Project.
List here the incidental services that are required as part of the Bidder’s
bid cross referencing to the technical specifications and SCC as
appropriate.
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15.5 Select one, delete the rest.
If the Funding Source is the GOP or WB: Bid Prices shall be fixed.
Adjustable price proposals shall be treated as non-responsive and shall be
rejected.
If the Funding Source is the JBIC or ADB, and the contract is of over
twelve (12) months duration, insert the appropriate special condition of
contract and state the following: Adjustments are authorized in accordance
with the price adjustment provisions specified in the corresponding SCC
provision of GCC Clause 9.
The Bid prices for Goods supplied from outside of the Philippines shall be
quoted in Philippine Pesos.
Or
The Bid prices for Goods supplied from outside of the Philippines shall be
quoted either in Philippine Pesos or United States Dollars at the discretion
of the Bidder.
If the Funding Source is GOP, maintain the ITB Clause and state here: No
further instructions.
If the Funding Source is the GOP or WB: The bid security shall be in the
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following amount:
If the Funding Source is the ADB or JICA: The bid security shall be in the
following amount [insert 2.5% of the ABC].
18.5(a)(iv) If the Funding Source is GOP or WB, maintain the ITB clause and include
the following as additional grounds for forfeiture of bid security:
3. Allowing the use of one’s name, or using the name of another for
purposes of public bidding.
8. Failure of the potential joint venture partners to enter into the joint
venture after the bid is declared as successful.
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9. All other acts that tend to defeat the purpose of the competitive
bidding, such as habitually withdrawing from bidding, submitting
late Bids or patently insufficient bid, for at least three (3) times
within a year, except for valid reasons.
If the Funding Source is ADB, maintain the ITB Clause and state here: No
further instructions.
If the Funding Source is GOP, ADB, or WB, maintain the ITB clause and
state here: No further instructions.
If the Funding Source is JBIC, state the following: Failure to enter into a
JV in the form submitted as part of the Bidders Bid if the Bid is made by
two or more potential JV partners.
If the Funding Source is GOP, maintain the ITB Clause and state here: No
further instructions.
20.3 Each Bidder shall submit [insert required number] original and [insert
required number] copies of the first and second components of its bid.
The date and time of bid opening is [insert time and date].
If the Funding Source is GOP, maintain the ITB Clause and state here: No
further instructions.
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If the Funding Source is a foreign government/foreign or international
financing institution, maintain the ITB Clause and state “No further
instructions”, or specify the additional conditions and/or exceptions to the
rule, if any.
Lots should be formed of similar items that are likely to attract the
maximum competition. A lot is the quantity and number of items that will be
included in a single contract. For example:
Option 2 - All items to be grouped together to form one complete Lot that
will be awarded to one Bidder to form one complete contract.
The goods are grouped in a single lot and the lot shall not be divided into
sub-lots for the purpose of bidding, evaluation, and contract award.
Or
All Goods are grouped in lots listed below. Bidders shall have the option of
submitting a proposal on any or all lots and evaluation and contract award
will be undertaken on a per lot basis. Lots shall not be divided further into
sub-lots for the purpose of bidding, evaluation, and contract award.
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Grouping and Evaluation of Lots mentioned above and delete the rest.
If the Funding Source is GOP, maintain the ITB Clause and state here: No
further instructions.
No additional criteria
Or
In addition to the criteria listed in ITB Clause 28.3 and 28.5, the following
applicable additional criteria and its corresponding quantification method
specified in this clause will be used to evaluate and compare bids:
Delivery schedule –
If the Funding Source is ADB or JICA, select one quantification method for
this criterion and delete the rest. If the Funding Source is WB, the clause
on this criterion may be deleted if not applicable.
The Procuring Entity requires that the Goods under the Invitation to Bid
shall be delivered (shipped) at the time specified in Section VI. Schedule of
Requirements. The estimated time of arrival of the Goods at the Project
Site will be calculated for each Bid after allowing for reasonable
international and inland transportation time. Treating the Bid resulting in
the earliest time of arrival as the base, a delivery “adjustment” will be
calculated for other Bids by applying a [insert percentage] of the EXW
plus delivery to final destination/DDP price for each week of delay beyond
the base, and this will be added to the Bid price for evaluation. No credit
shall be given to early delivery.
Or
The Goods covered under the Invitation to Bid are required to be delivered
(shipped) within an acceptable range of weeks specified in the Schedule of
Requirement. No credit will be given to earlier deliveries, and Bids
offering delivery beyond this range will be treated as non-responsive.
Within this acceptable range, an adjustment per week of [insert
percentage] will be added for evaluation to the Bid price of Bids offering
deliveries later than the earliest delivery period specified in Section VI.
47
Schedule of Requirements.
Or
The Goods covered under the Invitation to Bid are required to be delivered
(shipped) in partial shipments, as specified in Section VI. Schedule of
Requirements. Bids offering deliveries earlier or later than the specified
deliveries will be adjusted in the evaluation by adding to the Bid price a
factor equal to [insert percentage] of deliveries price per week of variation
from the specified delivery schedule.
If the Funding Source is ADB or JICA, select one quantification method for
this criterion and delete the rest. If the Funding Source is WB, the clause
on this criterion may be deleted if not applicable.
Or
The Procuring Entity will draw up a list of high-usage and high-value items
of components and spare parts, along with estimated quantities of usage in
the initial period of operation for [insert period of operation]. The total
cost of these items and quantities will be computed from spare parts unit
prices submitted by the Bidder and added to the Bid price.
Or
The Procuring Entity will estimate the cost of spare parts usage in the initial
period of operation for [insert period of operation] based on the
information furnished by each Bidder, as well as on past experience of the
Procuring Entity or other Procuring Entities in similar situations. Such
costs shall be added to the Bid price for evaluation.
Any of the paragraphs under this criterion may be deleted if not applicable
and retained if otherwise.
The Goods must have been manufactured for a period of not less than
[insert number of years] immediately preceding the date of Bid opening.
The minimum number of units sold in the Philippines must be [insert
number] and the minimum number of units sold worldwide must be [insert
number].
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to the Procuring Entity.
29.2(b) Specify whether Bidders have option to submit manually filed tax returns or
tax returns filed through the Electronic Filing and Payments System
(EFPS).
NOTE: The latest income and business tax returns are those within the last
six months preceding the date of bid submission.
29.2(d) List licenses and permits relevant to the Project and the corresponding law
requiring it.
32.4(g) List additional contract documents relevant to the Project that may be
required by existing laws and/or the Procuring Entity.
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Section IV. General Conditions of Contract
The GCC herein shall not be altered. Any changes and complementary information, which
may be needed, shall be introduced only through the SCC in Section V.
51
TABLE OF CONTENTS
1. DEFINITIONS .............................................................................................. 54
2. CORRUPT, FRAUDULENT, COLLUSIVE, AND COERCIVE
PRACTICES ................................................................................................. 55
3. INSPECTION AND AUDIT BY THE FUNDING SOURCE ................................. 56
4. GOVERNING LAW AND LANGUAGE ........................................................... 56
5. NOTICES ..................................................................................................... 56
6. SCOPE OF CONTRACT ................................................................................ 56
7. SUBCONTRACTING ..................................................................................... 56
8. PROCURING ENTITY’S RESPONSIBILITIES ................................................ 57
9. PRICES ....................................................................................................... 57
10. PAYMENT ................................................................................................... 57
11. ADVANCE PAYMENT .................................................................................. 58
12. TAXES AND DUTIES .................................................................................... 58
13. PERFORMANCE SECURITY ........................................................................ 58
14. USE OF CONTRACT DOCUMENTS AND INFORMATION .............................. 59
15. STANDARDS ................................................................................................ 59
16. INSPECTION AND TESTS ............................................................................. 59
17. WARRANTY ................................................................................................ 60
18. DELAYS IN THE SUPPLIER’S PERFORMANCE ............................................ 60
19. LIQUIDATED DAMAGES ............................................................................. 61
20. SETTLEMENT OF DISPUTES ....................................................................... 61
21. LIABILITY OF THE SUPPLIER ..................................................................... 62
22. FORCE MAJEURE ....................................................................................... 62
23. TERMINATION FOR DEFAULT.................................................................... 62
24. TERMINATION FOR INSOLVENCY .............................................................. 63
25. TERMINATION FOR CONVENIENCE ........................................................... 63
26. TERMINATION FOR UNLAWFUL ACTS ...................................................... 64
27. PROCEDURES FOR TERMINATION OF CONTRACTS ................................... 64
28. ASSIGNMENT OF RIGHTS ........................................................................... 65
29. CONTRACT AMENDMENT .......................................................................... 65
52
30. APPLICATION ............................................................................................. 65
53
1. Definitions
In this Contract, the following terms shall be interpreted as indicated:
(a) “The Contract” means the agreement entered into between the
Procuring Entity and the Supplier, as recorded in the Contract Form
signed by the parties, including all attachments and appendices thereto
and all documents incorporated by reference therein.
(b) “The Contract Price” means the price payable to the Supplier under the
Contract for the full and proper performance of its contractual
obligations.
(c) “The Goods” means all of the supplies, equipment, machinery, spare
parts, other materials and/or general support services which the
Supplier is required to provide to the Procuring Entity under the
Contract.
(d) “The Services” means those services ancillary to the supply of the
Goods, such as transportation and insurance, and any other incidental
services, such as installation, commissioning, provision of technical
assistance, training, and other such obligations of the Supplier covered
under the Contract.
(g) “The Procuring Entity” means the organization purchasing the Goods,
as named in the SCC.
(j) The “Funding Source” means the organization named in the SCC.
(k) “The Project Site,” where applicable, means the place or places named
in the SCC.
(m) The “Effective Date” of the contract will be the date of receipt by the
Supplier of the Notice to Proceed or the date provided in the Notice to
Proceed. Performance of all obligations shall be reckoned from the
Effective Date of the Contract.
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(n) “Verified Report” refers to the report submitted by the Implementing
Unit to the Head of the Procuring Entity setting forth its findings as to
the existence of grounds or causes for termination and explicitly stating
its recommendation for the issuance of a Notice to Terminate.
(a) defines, for the purposes of this provision, the terms set forth below as
follows:
(b) will reject a proposal for award if it determines that the Bidder
recommended for award has engaged in any of the practices mentioned
in this Clause for purposes of competing for the contract.
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available under the applicable law on individuals and organizations deemed to
be involved with any of the practices mentioned in GCC Clause 2.1(a).
This Contract has been executed in the English language, which shall be the
binding and controlling language for all matters relating to the meaning or
interpretation of this Contract. All correspondence and other documents
pertaining to this Contract exchanged by the parties shall be written in
English.
5. Notices
Any notice, request, or consent required or permitted to be given or made
pursuant to this Contract shall be in writing. Any such notice, request, or
consent shall be deemed to have been given or made when received by the
concerned party, either in person or through an authorized representative of
the Party to whom the communication is addressed, or when sent by registered
mail, telex, telegram, or facsimile to such Party at the address specified in the
SCC, which shall be effective when delivered and duly received or on the
notice’s effective date, whichever is later.
A Party may change its address for notice hereunder by giving the other Party
notice of such change pursuant to the provisions listed in the SCC for GCC
Clause 5.1.
6. Scope of Contract
The GOODS and Related Services to be provided shall be as specified in
Section VI. Schedule of Requirements.
This Contract shall include all such items, although not specifically
mentioned, that can be reasonably inferred as being required for its completion
as if such items were expressly mentioned herein. Any additional
requirements for the completion of this Contract shall be provided in the SCC.
7. Subcontracting
Subcontracting of any portion of the Goods, if allowed in the BDS, does not
relieve the Supplier of any liability or obligation under this Contract. The
Supplier will be responsible for the acts, defaults, and negligence of any
subcontractor, its agents, servants or workmen as fully as if these were the
56
Supplier’s own acts, defaults, or negligence, or those of its agents, servants or
workmen.
The Procuring Entity shall pay all costs involved in the performance of its
responsibilities in accordance with GCC Clause 6.
9. Prices
Prices charged by the Supplier for Goods delivered and/or services performed under
this Contract shall not vary from the prices quoted by the Supplier in its bid, with the
exception of any change in price resulting from a Change Order issued in accordance
with GCC Clause 29, or if applicable, adjustments authorized in accordance with the
price adjustment provisions specified in the SCC.
10. Payment
Unless otherwise specified in the SCC, payments shall be made only upon a
certification by the Head of the Procuring Entity to the effect that the Goods
have been rendered or delivered in accordance with the terms of this Contract
and have been duly inspected and accepted. Except with the prior approval of
the President no payment shall be made for services not yet rendered or for
supplies and materials not yet delivered under this Contract. Ten percent
(10%) of the amount of each payment shall be retained by the Procuring Entity
to cover the Supplier’s warranty obligations under this Contract as described
in GCC Clause 17.
The Supplier’s request(s) for payment shall be made to the Procuring Entity in
writing, accompanied by an invoice describing, as appropriate, the Goods
delivered and/or Services performed, and by documents submitted pursuant to
the SCC provision for GCC Clause 6.2, and upon fulfillment of other
obligations stipulated in this Contract.
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11. Advance Payment
Advance payment shall be made only after prior approval of the President, and
shall not exceed fifteen percent (15%) of the Contract amount, unless
otherwise directed by the President or in cases allowed under Annex “D” of
RA 9184.
For Goods supplied from abroad, ten percent (10%) of the Contract price shall
be paid within sixty (60) calendar days from signing of the contract and upon
submission of a claim and a bank guarantee issued by a licensed bank for the
equivalent amount valid until the Goods are delivered and in the form
provided in Section VIII. Bidding Forms.
All progress payments shall first be charged against the advance payment until
the latter has been fully exhausted.
The performance security shall remain valid until issuance by the Procuring
Entity of the Certificate of Final Acceptance.
(a) There are no pending claims against the Supplier or the surety
company filed by the Procuring Entity;
(b) The Supplier has no pending claims for labor and materials filed
against it; and
In case of a reduction of the contract value, the Procuring Entity shall allow a
proportional reduction in the original performance security, provided that any
58
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.
Any document, other than this Contract itself, enumerated in GCC Clause
14.1 shall remain the property of the Procuring Entity and shall be returned
(all copies) to the Procuring Entity on completion of the Supplier’s
performance under this Contract if so required by the Procuring Entity.
15. Standards
The Goods provided under this Contract shall conform to the standards mentioned in
the Section VII. Technical Specifications; and, when no applicable standard is
mentioned, to the authoritative standards appropriate to the Goods’ country of origin.
Such standards shall be the latest issued by the institution concerned.
The Procuring Entity may reject any Goods or any part thereof that fail to pass
any test and/or inspection or do not conform to the specifications. The
Supplier shall either rectify or replace such rejected Goods or parts thereof or
59
make alterations necessary to meet the specifications at no cost to the
Procuring Entity, and shall repeat the test and/or inspection, at no cost to the
Procuring Entity, upon giving a notice pursuant to GCC Clause 5.
The Supplier agrees that neither the execution of a test and/or inspection of the
Goods or any part thereof, nor the attendance by the Procuring Entity or its
representative, shall release the Supplier from any warranties or other
obligations under this Contract.
17. Warranty
The Supplier warrants that the Goods supplied under the Contract are new,
unused, of the most recent or current models, and that they incorporate all
recent improvements in design and materials, except when the technical
specifications required by the Procuring Entity provides otherwise.
The Supplier further warrants that all Goods supplied under this Contract shall
have no defect, arising from design, materials, or workmanship or from any
act or omission of the Supplier that may develop under normal use of the
supplied Goods in the conditions prevailing in the country of final destination.
The Procuring Entity shall promptly notify the Supplier in writing of any
claims arising under this warranty. Upon receipt of such notice, the Supplier
shall, within the period specified in the SCC and with all reasonable speed,
repair or replace the defective Goods or parts thereof, without cost to the
Procuring Entity.
If the Supplier, having been notified, fails to remedy the defect(s) within the
period specified in GCC Clause 17.4, the Procuring Entity may proceed to
take such remedial action as may be necessary, at the Supplier’s risk and
expense and without prejudice to any other rights which the Procuring Entity
may have against the Supplier under the Contract and under the applicable
law.
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If at any time during the performance of this Contract, the Supplier or its
Subcontractor(s) should encounter conditions impeding timely delivery of the
Goods and/or performance of Services, the Supplier shall promptly notify the
Procuring Entity in writing of the fact of the delay, its likely duration and its
cause(s). As soon as practicable after receipt of the Supplier’s notice, and
upon causes provided for under GCC Clause 22, the Procuring Entity shall
evaluate the situation and may extend the Supplier’s time for performance, in
which case the extension shall be ratified by the parties by amendment of
Contract.
Except as provided under GCC Clause 22, a delay by the Supplier in the
performance of its obligations shall render the Supplier liable to the imposition
of liquidated damages pursuant to GCC Clause 19, unless an extension of
time is agreed upon pursuant to GCC Clause 29 without the application of
liquidated damages.
If after thirty (30) days, the parties have failed to resolve their dispute or
difference by such mutual consultation, then either the Procuring Entity or the
Supplier may give notice to the other party of its intention to commence
arbitration, as hereinafter provided, as to the matter in dispute, and no
arbitration in respect of this matter may be commenced unless such notice is
given.
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Notwithstanding any reference to arbitration herein, the parties shall continue
to perform their respective obligations under the Contract unless they
otherwise agree; and the Procuring Entity shall pay the Supplier any monies
due the Supplier.
For purposes of this Contract the terms “force majeure” and “fortuitous event”
may be used interchangeably. In this regard, a fortuitous event or force
majeure shall be interpreted to mean an event which the Contractor could not
have foreseen, or which though foreseen, was inevitable. It shall not include
ordinary unfavorable weather conditions; and any other cause the effects of
which could have been avoided with the exercise of reasonable diligence by
the Contractor.
If a force majeure situation arises, the Supplier shall promptly notify the
Procuring Entity in writing of such condition and the cause thereof. Unless
otherwise directed by the Procuring Entity in writing, the Supplier shall
continue to perform its obligations under the Contract as far as is reasonably
practical, and shall seek all reasonable alternative means for performance not
prevented by the force majeure.
(a) Outside of force majeure, the Supplier fails to deliver or perform any
or all of the Goods within the period(s) specified in the contract, or
within any extension thereof granted by the Procuring Entity pursuant
to a request made by the Supplier prior to the delay, and such failure
amounts to at least ten percent (10%) of the contact price;
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(b) As a result of force majeure, the Supplier is unable to deliver or
perform any or all of the Goods, amounting to at least ten percent
(10%) of the contract price, for a period of not less than sixty (60)
calendar days after receipt of the notice from the Procuring Entity
stating that the circumstance of force majeure is deemed to have
ceased; or
(c) The Supplier fails to perform any other obligation under the Contract.
In the event the Procuring Entity terminates this Contract in whole or in part,
for any of the reasons provided under GCC Clauses 23 to 26, the Procuring
Entity may procure, upon such terms and in such manner as it deems
appropriate, Goods or Services similar to those undelivered, and the Supplier
shall be liable to the Procuring Entity for any excess costs for such similar
Goods or Services. However, the Supplier shall continue performance of this
Contract to the extent not terminated.
In case the delay in the delivery of the Goods and/or performance of the
Services exceeds a time duration equivalent to ten percent (10%) of the
specified contract time plus any time extension duly granted to the Supplier,
the Procuring Entity may terminate this Contract, forfeit the Supplier's
performance security and award the same to a qualified Supplier.
The Goods that have been delivered and/or performed or are ready for delivery
or performance within thirty (30) calendar days after the Supplier’s receipt of
Notice to Terminate shall be accepted by the Procuring Entity at the contract
terms and prices. For Goods not yet performed and/or ready for delivery, the
Procuring Entity may elect:
(a) to have any portion delivered and/or performed and paid at the contract
terms and prices; and/or
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(b) to cancel the remainder and pay to the Supplier an agreed amount for
partially completed and/or performed goods and for materials and parts
previously procured by the Supplier.
If the Supplier suffers loss in its initial performance of the terminated contract,
such as purchase of raw materials for goods specially manufactured for the
Procuring Entity which cannot be sold in open market, it shall be allowed to
recover partially from this Contract, on a quantum meruit basis. Before
recovery may be made, the fact of loss must be established under oath by the
Supplier to the satisfaction of the Procuring Entity before recovery may be
made.
(a) Upon receipt of a written report of acts or causes which may constitute
ground(s) for termination as aforementioned, or upon its own initiative,
the Implementing Unit shall, within a period of seven (7) calendar
days, verify the existence of such ground(s) and cause the execution of
a Verified Report, with all relevant evidence attached;
(i) that this Contract is being terminated for any of the ground(s)
afore-mentioned, and a statement of the acts that constitute the
ground(s) constituting the same;
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(iii) an instruction to the Supplier to show cause as to why this
Contract should not be terminated; and
(d) Within a period of seven (7) calendar days from receipt of the Notice
of Termination, the Supplier shall submit to the Head of the Procuring
Entity a verified position paper stating why this Contract should not be
terminated. If the Supplier fails to show cause after the lapse of the
seven (7) day period, either by inaction or by default, the Head of the
Procuring Entity shall issue an order terminating this Contract;
(e) The Procuring Entity may, at anytime before receipt of the Supplier’s
verified position paper to withdraw the Notice to Terminate if it is
determined that certain items or works subject of the notice had been
completed, delivered, or performed before the Supplier’s receipt of the
notice;
(f) Within a non-extendible period of ten (10) calendar days from receipt
of the verified position paper, the Head of the Procuring Entity shall
decide whether or not to terminate this Contract. It shall serve a
written notice to the Supplier of its decision and, unless otherwise
provided, this Contract is deemed terminated from receipt of the
Supplier of the notice of decision. The termination shall only be based
on the ground(s) stated in the Notice to Terminate;
(g) The Head of the Procuring Entity may create a Contract Termination
Review Committee (CTRC) to assist him in the discharge of this
function. All decisions recommended by the CTRC shall be subject to
the approval of the Head of the Procuring Entity; and
(h) The Supplier must serve a written notice to the Procuring Entity of its
intention to terminate the contract at least thirty (30) calendar days
before its intended termination. The Contract is deemed terminated if it
is not resumed in thirty (30) calendar days after the receipt of such
notice by the Procuring Entity.
30. Application
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These General Conditions shall apply to the extent that they are not superseded by
provisions of other parts of this Contract.
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Section V. Special Conditions of Contract
Notes on the Special Conditions of Contract
Similar to the BDS, the clauses in this Section are intended to assist the Procuring Entity in
providing contract-specific information in relation to corresponding clauses in the GCC.
The provisions of this Section complement the GCC, specifying contractual requirements
linked to the special circumstances of the Procuring Entity, the Procuring Entity’s country,
the sector, and the Goods purchased. In preparing this Section, the following aspects
should be checked:
However, no special condition which defeats or negates the general intent and purpose of
the provisions of Section IV should be incorporated herein.
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Special Conditions of Contract
GCC Clause
1.1(g) The Procuring Entity is [insert name of Procuring Entity].
1.1(i) The Supplier is [to be inserted at the time of contract award].
1.1(j) The Funding Source is:
The Supplier’s address for Notices is: [Insert address including, name
of contact, fax and telephone number]
6.2 List here any additional requirements for the completion of this
Contract. The following requirements and the corresponding
provisions may be deleted, amended, or retained depending on its
applicability to this Contract:
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parties shall have the meanings assigned to them by the current
edition of INCOTERMS published by the International Chamber of
Commerce, Paris. The Delivery terms of this Contract shall be as
follows:
Upon delivery of the Goods to the Project Site, the Supplier shall
notify the Procuring Entity and present the following documents to
the Procuring Entity:
Upon shipment, the Supplier shall notify the Procuring Entity and the
insurance company by cable the full details of the shipment, including
Contract Number, description of the Goods, quantity, vessel, bill of
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lading number and date, port of loading, date of shipment, port of
discharge etc. Upon delivery to the Project Site, the Supplier shall
notify the Procuring Entity and present the following documents as
applicable with the documentary requirements of any letter of credit
issued taking precedence:
Incidental Services –
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(e) training of the Procuring Entity’s personnel, at the Supplier’s
plant and/or on-site, in assembly, start-up, operation,
maintenance, and/or repair of the supplied Goods.
The Contract price for the Goods shall include the prices charged by
the Supplier for incidental services and shall not exceed the prevailing
rates charged to other parties by the Supplier for similar services.
Spare Parts –
(a) such spare parts as the Procuring Entity may elect to purchase
from the Supplier, provided that this election shall not relieve
the Supplier of any warranty obligations under this Contract;
and
(b) in the event of termination of production of the spare parts:
Packaging –
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shall take into consideration, where appropriate, the remoteness of the
GOODS’ final destination and the absence of heavy handling
facilities at all points in transit.
The outer packaging must be clearly marked on at least four (4) sides
as follows:
Name of the Procuring Entity
Name of the Supplier
Contract Description
Final Destination
Gross weight
Any special lifting instructions
Any special handling instructions
Any relevant HAZCHEM classifications
Insurance –
The Goods supplied under this Contract shall be fully insured by the
Supplier in a freely convertible currency against loss or damage
incidental to manufacture or acquisition, transportation, storage, and
delivery. The Goods remain at the risk and title of the Supplier until
their final acceptance by the Procuring Entity.
Transportation –
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this Contract, shall be arranged by the Supplier, and related costs shall
be included in the Contract Price.
Patent Rights –
For the given scope of work in this Contract as awarded, all bid prices
are considered fixed prices, and therefore not subject to price
escalation during contract implementation, except under extraordinary
circumstances and upon prior approval of the GPPB in accordance
with Section 61 of R.A. 9184 and its IRR-A.
For contracts of more than twelve (12) months duration funded by the
ADB or the JBIC, state the following:
L1 M1
P P0 a b c P0
L0 M0
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in which:
The Bidder shall indicate the source of the indices and the base date
indices in its Bid.
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the prices of the Goods and Services subject to adjustment.
If the Funding Source is GOP, maintain the GCC Clause and state
here: No further instructions.
If the Funding Source is ADB, JBIC, or WB, use the following clause:
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(45) days of the date shown on the delivery receipt the
Supplier shall have the right to claim payment of the
remaining twenty percent (20%) subject to the Procuring
Entity’s own verification of the reason(s) for the failure to
issue documents (vii) and (viii) as described in the SCC
provision on Delivery and Documents.
If the Funding Source is GOP, maintain the GCC Clause and state
here: No further instructions.
If the Funding Source is GOP, maintain the GCC Clause and state
here: No further instructions.
If the Funding Source is GOP, maintain the GCC Clause and state
here: No further instructions.
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Supplies: Three (3) months after acceptance by the Procuring Entity
of the delivered Goods or after the Goods are consumed, whichever is
earlier.
If the Funding is ADB delete the above paragraph and insert the
following:
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Section VI. Schedule of Requirements
The delivery schedule expressed as weeks/months stipulates hereafter a delivery date which
is the date of delivery to the project site.
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Section VII. Technical Specifications
A set of precise and clear specifications is a prerequisite for Bidders to respond realistically
and competitively to the requirements of the Procuring Entity without qualifying their bids.
In the context of Competitive Bidding, the specifications (e.g. production/delivery
schedule, manpower requirements, and after-sales service/parts) must be prepared to
permit the widest possible competition and, at the same time, present a clear statement of
the required standards of workmanship, materials, and performance of the goods and
services to be procured.. Only if this is done will the objectives of transparency, equity,
efficiency, fairness and economy in procurement be realized, responsiveness of bids be
ensured, and the subsequent task of bid evaluation and post-qualification facilitated. The
specifications should require that all items, materials and accessories to be included or
incorporated in the goods be new, unused, and of the most recent or current models, and
that they include or incorporate all recent improvements in design and materials unless
otherwise provided in the Contract.
Samples of specifications from previous similar procurements are useful in this respect.
The use of metric units is encouraged. Depending on the complexity of the goods and the
repetitiveness of the type of procurement, it may be advantageous to standardize the
General Technical Specifications and incorporate them in a separate subsection. The
General Technical Specifications should cover all classes of workmanship, materials, and
equipment commonly involved in manufacturing similar goods. Deletions or addenda
should then adapt the General Technical Specifications to the particular procurement.
Care must be taken in drafting specifications to ensure that they are not restrictive. In the
specification of standards for equipment, materials, and workmanship, recognized
Philippine and international standards should be used as much as possible. Where other
particular standards are used, whether national standards or other standards, the
specifications should state that equipment, materials, and workmanship that meet other
authoritative standards, and which ensure at least a substantially equal quality than the
standards mentioned, will also be acceptable. The following clause may be inserted in the
Special Conditions of Contract or the Technical Specifications.
Wherever reference is made in the Technical Specifications to specific standards and codes
to be met by the goods and materials to be furnished or tested, the provisions of the latest
edition or revision of the relevant standards and codes shall apply, unless otherwise
expressly stated in the Contract. Where such standards and codes are national or relate to a
particular country or region, other authoritative standards that ensure substantial
equivalence to the standards and codes specified will be acceptable.
Reference to brand name and catalogue number should be avoided as far as possible;
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where unavoidable they should always be followed by the words “or at least equivalent.”
References to brand names cannot be used when the Funding Source is the GOP.
Where appropriate, drawings, including site plans as required, may be furnished by the
Procuring Entity with the Bidding Documents. Similarly, the Supplier may be requested to
provide drawings or samples either with its Bid or for prior review by the Procuring Entity
during contract execution.
Bidders are also required, as part of the technical specifications, to complete their
statement of compliance demonstrating how the items comply with the specification.
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Technical Specifications
Item Specification Statement of Compliance
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Section VIII. Bidding Forms
When requested in the BDS, the Bidder should provide the Bid Security, either in the
form included hereafter or in another form acceptable to the Entity, pursuant to ITB
Clause 18.1.
The Contract Agreement Form, when it is finalized at the time of contract award,
should incorporate any corrections or modifications to the accepted Bid resulting from
price corrections. The Price Schedule and Schedule of Requirements deemed to form
part of the contract should be modified accordingly.
The Performance Security Form and Bank Guarantee Form for Advance Payment
should not be completed by the Bidders at the time of their Bid preparation. Only the
successful Bidder will be required to provide performance security and bank guarantee
for advance payment in accordance with one of the forms indicated herein or in another
form acceptable to the Procuring Entity and pursuant to GCC Clause 13 and its
corresponding SCC provision.
The sworn affidavit must be completed by all Bidders in accordance with ITB Clause
4.2 failure to do so and submit it with the bid shall result in the rejection of the bid and
the Bidder’s disqualification.
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TABLE OF CONTENTS
BID FORM............................................................................................................ 86
CONTRACT AGREEMENT FORM ......................................................................... 90
OMNIBUS SWORN STATEMENT ........................................................................... 91
BANK GUARANTEE FORM FOR ADVANCE PAYMENT ........................................ 93
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Bid Form
Date:
Invitation to Bid5 No:
Having examined the Bidding Documents including Bid Bulletin Numbers [insert
numbers], the receipt of which is hereby duly acknowledged, we, the undersigned, offer to
[supply/deliver/perform] [description of the Goods] in conformity with the said Bidding
Documents for the sum of [total Bid amount in words and figures] or such other sums as may
be ascertained in accordance with the Schedule of Prices attached herewith and made part of
this Bid.
We undertake, if our Bid is accepted, to deliver the goods in accordance with the
delivery schedule specified in the Schedule of Requirements.
We agree to abide by this Bid for the Bid Validity Period specified in BDS provision
for ITB Clause 18.2 and it shall remain binding upon us and may be accepted at any time
before the expiration of that period.
Until a formal Contract is prepared and executed, this Bid, together with your written
acceptance thereof and your Notice of Award, shall be binding upon us.
We understand that you are not bound to accept the lowest or any Bid you may receive.
We certify/confirm that we comply with the eligibility requirements as per ITB Clause
5 of the Bidding Documents.
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Dated this ________________ day of ________________ 20______.
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For Goods Offered From Abroad
1 2 3 4 5 6 7 8 9
Item Description Country Quantity Unit price CIF port of Total CIF or Unit Price Unit price Total Price
of origin entry (specify port) or CIPprice per Delivered Duty Delivered Duty delivered DDP
CIP named place item Unpaid (DDU) Paid (DDP) (col 4 x 8)
(specify border point or (col. 4 x 5)
place of destination)
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For Goods Offered From Within the Philippines
1 2 3 4 5 6 7 8 9 10
Item Description Country Quantity Unit price EXW Cost of local Total price Unit prices per Sales and other Total Price
of origin per item labor, raw EXW per item item final taxes payable delivered Final
material, and (cols. 4 x 5) destination and per item if Destination
component2 unit price of Contract is (col 8 + 9) x 4
other incidental awarded
services
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Contract Agreement Form
THIS AGREEMENT made the _____ day of __________ 20_____ between [name of
PROCURING ENTITY] of the Philippines (hereinafter called “the Entity”) of the one part and
[name of Supplier] of [city and country of Supplier] (hereinafter called “the Supplier”) of the
other part:
WHEREAS the Entity invited Bids for certain goods and ancillary services, viz.,
[brief description of goods and services] and has accepted a Bid by the Supplier for the
supply of those goods and services in the sum of [contract price in words and figures]
(hereinafter called “the Contract Price”).
1. In this Agreement words and expressions shall have the same meanings as are
respectively assigned to them in the Conditions of Contract referred to.
2. The following documents shall be deemed to form and be read and construed as part
of this Agreement, viz.:
(a) the Bid Form and the Price Schedule submitted by the Bidder;
(b) the Schedule of Requirements;
(c) the Technical Specifications;
(d) the General Conditions of Contract;
(e) the Special Conditions of Contract; and
(f) the Entity’s Notification of Award.
4. The Entity hereby covenants to pay the Supplier in consideration of the provision of
the goods and services and the remedying of defects therein, the Contract Price or such other
sum as may become payable under the provisions of the contract at the time and in the
manner prescribed by the contract.
IN WITNESS whereof the parties hereto have caused this Agreement to be executed
in accordance with the laws of the Republic of the Philippines on the day and year first above
written.
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Omnibus Sworn Statement
AFFIDAVIT
I, [Name of Affiant], of legal age, [Civil Status], [Nationality], and residing at [Address
of Affiant], after having been duly sworn in accordance with law, do hereby depose and state
that:
If a sole proprietorship: As the owner and sole proprietor of [Name of Bidder], I have
full power and authority to do, execute and perform any and all acts necessary to
represent it in the bidding for [Name of the Project] of the [Name of the Procuring
Entity];
5. [Name of Bidder] is authorizing the Head of the Procuring Entity or its duly
authorized representative(s) to verify all the documents submitted;
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If a sole proprietorship: I am not related to the Head of the Procuring Entity,
members of the Bids and Awards Committee (BAC), the Technical Working Group,
and the BAC Secretariat, the head of the Project Management Office or the end-user
unit, and the project consultants by consanguinity or affinity up to the third civil
degree;
7. [Name of Bidder] complies with existing labor laws and standards; and
c) Made an estimate of the facilities available and needed for the contract to be bid,
if any; and
IN WITNESS WHEREOF, I have hereunto set my hand this __ day of ___, 20__ at
____________, Philippines.
_____________________________________
Bidder’s Representative/Authorized Signatory
[JURAT]
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Bank Guarantee Form for Advance Payment
In accordance with the payment provision included in the Special Conditions of Contract,
which amends Clause 10 of the General Conditions of Contract to provide for advance
payment, [name and address of Supplier] (hereinafter called the “Supplier”) shall deposit
with the PROCURING ENTITY a bank guarantee to guarantee its proper and faithful
performance under the said Clause of the Contract in an amount of [amount of guarantee in
figures and words].
We, the [bank or financial institution], as instructed by the Supplier, agree unconditionally
and irrevocably to guarantee as primary obligator and not as surety merely, the payment to
the PROCURING ENTITY on its first demand without whatsoever right of objection on our
part and without its first claim to the Supplier, in the amount not exceeding [amount of
guarantee in figures and words].
We further agree that no change or addition to or other modification of the terms of the
Contract to be performed thereunder or of any of the Contract documents which may be made
between the PROCURING ENTITY and the Supplier, shall in any way release us from any
liability under this guarantee, and we hereby waive notice of any such change, addition, or
modification.
This guarantee shall remain valid and in full effect from the date of the advance payment
received by the Supplier under the Contract until [date].
Yours truly,
[address]
[date]
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