I. Agency Servicing Division (ASD)

A. Virtual Store

1. What will happen if we (online client-agency) do not comply with the day of the process of payment as required by the system?

 The status of APR will change to “INCOMPLETE”. The reserved quantity will revert to the Inventory. After the lapse of the reservation, agency will create another eAPR due to the encoded INCOMPLETE order cannot be re-used anymore.

2. For items to be delivered within Metro Manila, when will PS deliver the ordered items? When will we (agencies) expect the delivery?

 Expect the delivery within 5-10 working days after validation of payment.

3. Does PS deliver 24/7?

   No. Delivery is during office hours only. But the Virtual Store is accessible for placing orders, 24/7. 

4. If Manila Depot is selected, can PS deliver to an address specified, e.g. Baguio City or other places outside Metro Manila?

  No. The address to be indicated in the ‘Add Address’ button should be within the vicinity / near in Manila, for reason that deliveries outside Manila entails added costs.

5. Is there added cost if delivery is outside Metro Manila?

  Yes. Freight costs still being established thru the system but the system not capable yet. To date the system can only accommodate Metro Manila orders. PhilGEPS to announced the use of the VS in the depot. But we are accepting request for delivery outside Metro Manila and the freight cost is determined by PS and will issue a Reply Action Document to end user for the forwarding services.

6.  Who will approve online the eAPR created by Supply Officer?

  The Chief Accountant, Budget Officer, the Cashier or any official authorized to approve funding of APR, depending on the agency’s internal policy. 

7.  What is the ground for disapproving agencies’ eAPRs?

  If the payment of the Agency thru Landbank is not correct or without actual payments made.

8.  When is approval to a Certificate of Non-Availability of Stocks (CNAS) issued?

 A CNAS may be requested online and approved at once subject however to certain requisites and conditions obtaining at the time of requests.

9.  What are the reasons for disapproval of a CNAS?

  CNAS may be disapproved based on the following conditions:

  -Items requested to be certified will be available on the required date indicated by the agency.

  -If it is of substantial quantity such that buying from outside sources would be “disadvantageous” to the government. 

10.  Is it possible that the price will change after the agency has submitted its order online?

  No. Once reserved, there will be no changes in the price. 

11. If the ordered item is on ‘Draft’, how will it reflect if the price changes? The old or the new price?

  Upon updating the eAPR, the new price will reflect since the eAPR still on ‘Draft’.

12. Why is it that there are instances that even if we (online client-agencies) ordered online, and the stocks were reserved for us, we are still experiencing the out-of-stock items?

  This is due to actual inventory and the system not tally.

13. What is the basis for not requiring us to submit an OR to COA since payment is already on online or on-call?

  Refer to COA Circular 2004-006.

14. How to requisition supplies from Procurement Service?

  The Client prepares its Agency Procurement Request (APR) indicating the items and quantities being requisitioned. The Agency Servicing Division (ASD) receives the APR, checks stocks availability, verifies the correctness of prices and prepares order of payment. The Finance Division (FD) receives from client agency payment for items requisitioned. After payment is made, the ASD prepares Authority to Deliver/Delivery Receipt (AD/DR). The Finance Division Signs the AD/DR to certify funds availability. The Operations Manager approves the issuance of stocks to requisitioning agency by signing the AD/DR. The Warehousing Division schedules and delivers the item to client agency.

 

II. WADD

1. Where are your warehouses situated?

  PS Main warehouse is situated at Cristobal Street, Paco, Manila. Landmark is the Unilever Office along U.N. Avenue.

2. What size of vehicles do you deploy in your fleet?

  PS has existing 2 units - 10 wheeler giga trucks; 3 units - 6 wheeler wing vans; 2 units - closed vans; 5 units - 6 wheeler elf trucks.

3. How long can you deliver purchased stocks to client agencies?

  PS can deliver within 3 working days to client agencies within Metro Manila from the time the Delivery Receipt is approved for delivery.

4. Do you collect freight charges?

  PS does not collect any additional cost or freight charge for Metro Manila deliveries. However, for nearby provincial deliveries, applicable charges will be collected from client agency.

5. Do you deliver on weekends and/or holidays?

  PS may deliver on weekends and/or holidays as long as it is coordinated closely with concerned parties prior to agreed date of delivery.

6. What are the hours of operation in Warehouse?

  Office Hours 8:00 a.m. to 5:00 p.m. Monday through Friday.

7. Where can I call regarding delivery of my order?

  If you have questions about your delivery, please call 563-9397/ 689-7750 loc. 4016 / 4014.

8. How do I return items on delivery that we do not need or wrong request?

  Our Delivery personnel have a form (Return/Cancellation of items) that you can fill out in case of outright rejection of items for delivery.

 

III. Purchasing Division

A. On Receiving a Purchase Order

1. When will a supplier know that the contract is ready for signing? 

  A personnel from Purchasing Division will contact the awardee when the contract is ready for signing and pick-up. He/she will inform the supplier of the documents required when receiving a contract.

2. What are the requirements in contract signing?

  Proof as authorized representative/signatory. Performance Bond/Security.

3. Why is the posting a Performance Security required before the signing of the contract and issuance of Notice to Proceed? And what are the different forms of Performance Security?

  A performance Security is to guarantee the faithful performance by the winning bidder of its obligations under the contract in accordance with the bidding documents, it shall post a performance security prior to the signing of the contract.

  The performance security shall be in an amount equal to a percentage of the total contract price in accordance with the following schedules:

Form of Performance Security

Amount of Performance Security

Cash or cashier’s/manager’s check issued by a Universal or Commercial Bank.

Five Percent (5%)

Bank draft/guarantee or irrevocable letter of credit issued by a Universal or Commercial Bank: Provided, however, that it shall be confirmed or authenticated by a Universal or Commercial Bank, if issued by a foreign bank.

Surety bond callable upon demand issued by a surety or insurance company duly certified by the Insurance Commission as authorized to issue such security; and/or

Thirty Percent (5%)

Any combination of the foregoing.

Proportionate to share of form with respect to total amount of security.

4. What are the other things that one should know when posting Performance Security?

  A Performance Security, except for cash, shall be complete in details and free from errors. For sample form see Annex A.

  A Performance Security, except for cash, shall be payable to “PROCUREMENT SERVICE” and NOT to “Department of Budget and Management”.

 A In case the awardee opts to post a Surety Bond as a Performance Security, it must be accompanied by a certificate issued by Insurance Commission authorizing the insurance company to issue such security. The certificate shall be specific to the project.

5. When can a supplier request for the withdrawal of Performance Security?

  Supplier can request for withdrawal of Performance Security once a Warranty Security is posted.

  For the procurement of goods, in order to assure that manufacturing defects shall be corrected by the supplier, a warranty security shall be required from the contract awardee for a minimum period of three (3) months, in the case of Expendable Suppliers, or a minimum period of one (1) year, in the case of Non-expendable suppliers, after acceptance of the delivered supplies.

  The obligations for the warranty shall be covered by either retention money in an amount equivalent to at least ten percent (10%) of every progress payment, or a special bank guarantee equivalent to at least ten percent (10%) of the total contract price. The said amounts shall only be released after the lapse of the warranty period however, that the supplies delivered are free from patent and latent defects and all the conditions imposed under the contract have been fully met.

6. What is the “Effective Date” of the contract?

  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.

7. Can a supplier deliver the items prior to contract signing?

  No. A Purchase Order should be secured and not mere Notice of Award (NOA) prior to any delivery.

A. On Delivery

 1. What are the documentary requirements before delivery?

  Copy of Purchase Order.

  Supplier’s Delivery Receipt (original + three (3) copies)              .

2. How to compute for delivery due date?

  Delivery due date is calculated by adding the number of calendar days in the delivery instructions provided in the Purchase Order to the date receipt of Notice to Proceed.

3. Is rejected deliveries considered as delivered?

  No. Rejected deliveries shall be construed as non-delivery of product(s)/item(s) and shall be subject to liquidated damages unless replaced immediately on the date deliveries were rejected.

4. What is liquidated damages?

  A liquidated damage is imposed if the supplier fails to satisfactorily deliver any or all of the goods and/or performs the services within the period(s) specified in the contract inclusive of duly granted time extension, if any.

5. How are liquidated damages computed?

  A liquidated damage is one-tenth of one percent (0.001) of the total value of the product(s)/goods purchased. It shall be deducted for each day of delay in the delivery of the product(s)/goods ordered.

6. Are all deliveries subject to inspections?

  Yes. All deliveries by suppliers shall be subject to inspection and acceptance by the Procurement Service. All necessary laboratory tests undertaken by the Procurement Service on the item(s) shall be for the account of the supplier.

7. Can a supplier request for extension of delivery?

  A supplier may request for extension of delivery by writing to the Director’s Office attention to “Executive Director Atty. Jose Tomas C. Syquia” before the due date of delivery. The letter to be submitted shall be complete in details/reference (e.g. Purchase Order, item, number of extension days being requested and the reason for the request.

8. What are the documentary requirements after completion of delivery and/or processing of payment?

       1. Supplier’s Delivery Receipt

     2. Sales Invoice corresponding to the total quantity of the purchase order or batch of delivery.

       3. Original Purchase Order

       4. Warranty Certificate for equipment

       5. Importation Documents, if applicable 

9. How long does a supplier get paid after a delivery?

   Normally, within five (5) working days after acceptance of delivery and completion of required documents for processing of payment.

  If with multiple batches of delivery, partial payment shall be allowed if the items in each batch of delivery have been completely delivered and after the end-user’s acceptance (for non-common supplies and equipment).

B. On Small Value Procurement (SVP) and Shopping

1. What is the difference between SVP and Shopping?

  Shopping is one of the alternative methods of procurement. It is a method of procurement of goods whereby the procuring entity simply requests for the submission of price quotations for readily available off-the-shelf goods or ordinary/regular equipment to be procured directly from suppliers of known qualifications.  This method of procurement shall be employed in any of the following cases.

  a.)When there is an unforeseen contingency requiring immediate purchase; provided however, that the amount shall not exceed the thresholds prescribed in Annex “H” of IRR.

  b.)Procurement of ordinary or regular office supplies and equipment not available in the Procurement Service involving an amount not exceeding the thresholds prescribed in Annex “H” of IRR.

  Small Value Procurement is where the procurement does not fall under Shopping in Section 52 of IRR and the amount does not exceed the threshold prescribed in annex “H” of IRR.

  The procuring entity shall draw up a list of at least three (3) suppliers, contractors, or consultants of known qualifications which will be invited to submit proposals, in the case of goods and infrastructure projects, or curriculum vitae, in the case of consulting services.

2. Are Request for Quotation (RFQ) for sale?

  Request for Quotation for an In-house bidding is free. Interested bidders may obtain a copy from Purchasing Division or visit the website at www.philgeps.gov.ph.

3. Is PS allowed to have brand preference?

  No. Award of Contract shall be made to the lowest quotation which complies with the minimum technical specifications and other terms and conditions stated in the RFQ.

4. Can a supplier give alternative quotations or exceed the Approved Budget of the Contract (ABC) for an In-house SVP or Shopping?

  No for both. Alternative Quotations shall be rejected. A price proposal with options is considered an alternative quotation. Proposals exceeding the ABC shall also be rejected.

5. What are the requirements for SVP?

  Interested bidders may obtain a copy from Purchasing Division or visit the website at www.philgeps.gov.ph to know the list of requirements. For list see Annex B.

6. Does an In-house SVP or Shopping require a formal quotation?

  Yes. Prospective bidders must submit a duly accomplished Price Proposal Form attached in the RFQ and submit at PS-Purchasing Division, DBM-Procurement Service, Ground Floor, PS Complex, Cristobal Street, Paco, Manila.  Bidder may opt to use their company stationery provided that all details from Price Proposal Form are covered.

7. How long does a supplier get paid after a delivery?

  Normally, within five (5) working days after acceptance of delivery and completion of required documents for processing of payment.

 If with multiple batches of delivery, partial payment shall be allowed if the items in each batch of delivery have been completely delivered and after the end-user’s acceptance (for non-common supplies and equipment).

 

 lV. Accounting Division

 A. Supplier’s Account:

1. Do we need to submit a letter requesting for the release of our retention money? What are the documents to be attached to our letter?

   No, retention money will be released automatically once it becomes due. All documents to be attached shall be the responsibility of the Accounting Division.

2. To whom can we address our letter?

   Letters concerning the Accounting Division should be addressed to the Chief Accountant (Mr. Allan Raul M. Catalan, CPA)

3. What is liquidated damages? Why are we charged with liquidated damages and did you arrive at the computation?

   Liquidated damage is an amount the parties designate during the formation of a contract for the injured party to collect as compensation upon non-performance, late performance or breach thereof. Section 68 of the IRR-A of R.A. 9184 provides for the allowable cumulative amount of liquidated damages, as follows:

   “All contracts executed in accordance with the Act and this IRR-A shall contain a provision on liquidated damages which shall be payable in case of breach thereof. For the procurement of goods and consulting services, the amount of the liquidated damages shall be at least equal to one-tenth of one percent (0.1%) of the cost of the unperformed portion for every day of delay.”

   For the procurement of infrastructure projects, the amount of the liquidated damages shall be in accordance with Annex “E.” Once the cumulative amount of liquidated damages reaches ten percent (10%) of the amount of the contract, the procuring entity shall rescind the contract, without prejudice to other courses of action and remedies open to it.

4. What is a Warranty Retention? How much is the amount of retention money? When can we claim our retention money/when is the due date of our retention?

   In order to assure that manufacturing defects shall be corrected by the Supplier, a warranty shall be required from the Supplier for a minimum period specified in the contract. The obligation for the warranty shall be covered by, at the Supplier’s option, either retention money in an amount equivalent to at least ten percent (10%) of the final payment, or a special bank guarantee equivalent to at least ten percent (10%) of the Contract Price or other such amount if so specified in the contract. The said amounts shall only be released after the lapse of the warranty period specified in the contract; provided, however, that the Supplies delivered are free from patent and latent defects and all the conditions imposed under the contract have been fully met.

  Warranty period shall be for a minimum period of three (3) months, in the case of expendable supplies, or a minimum period of one (1) year, in the case of non-expendable supplies, after the acceptance of the procuring entity.

5. How long is the processing period? When could we collect payment?

  The processing period of disbursement vouchers for payment to suppliers is within 2-4 Days upon receipt of documents, assuming all necessary documents all complete and correct. In which case, if there is lacking/incomplete or incorrect document/s, the processing period shall be 2-4 Days after completion or correction of the document/s.

6. What is the purpose of Bank Guarantee/Letter of Credit? Is there a standard form for this? What should be the amount of bank guarantee and for how long?

   In case of warranty retention, a Bank Guarantee/Letter of Credit maybe submitted in lieu of the retention money. The amount of the bank guarantee/letter of credit should be equivalent to at least ten percent (10%) of the progress payment in case of partial payments or at least ten percent (10%) of the Total Contract Price in case of one-time payment.

   A sample of the preferred form maybe requested thru the Accounting Division.

7. To whom should we address our Invoice/Billing? 

  Invoices or Billings should be addressed to the Procurement Service.

 

V. Inspection Division

1. What percentage of the total delivery is subjected to inspection?

  Usually ten (10) percent randomly picked from the total delivery is subjected to inspection and evaluation to determine quality conformance. 

  In case of equipment, each unit is checked for conformity to every requirement stated in the specifications.

2. In case of rejected delivery, what is the supplier’s next action?  Are the deliveries replacement for rejected items to be subjected to inspection?

  The supplier shall either rectify or replace such rejected goods or parts thereof or make alterations necessary to meet the specifications.

  Yes, the delivery replacement shall be subjected to the same process of test and/or inspection at no cost to the procuring entity.

3. What is your sales return policy?   

  Procurement Service accepts items returned by the client agencies upon written request stating the reasons for the return as “defective item” or an “incorrect item” if we deliver an item not in your APR or due to wrong preparation of request within the quarter from the delivery date.  

  We will not accept returned items if found defective due to improper use, opened packaging of consumables or other items in sealed packaging and items that were returned beyond the quarter from the delivery date.

4. How does the process work?

   Return the item with photocopy of the Agency Procurement Request (APR/eAPR), PS- Delivery Receipt and a written request stating the reason for return of the item.

  The technical inspector will examine the item to check if it is in good condition, unopened and unused.  He will accomplish the sales return form for approval of the Operations Manager prior to acceptance of the returned items.

  If the agency return the item claiming it is defective, the inspector will examine the returned item to assess the defects for repair or replacement.  He will issue acknowledgement receipt to the agency and coordinate with the supplier for the repair and/or replacement of the item. Once the defective item is repaired/replace, the technical inspector will call the agency to pick-up the item.

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