REVISED GUIDELINES IN THE CONDUCT OF PUBLIC BIDDING AND COMPARATIVE EVALUATION FOR CARGO HANDLING SERVICES

1.1    Sections 6a (ii), (iii) and (v), and b (vi), Presidential Decree No. 857, as amended.

1.2    PPA Board Resolution No. 912, as adopted on December 17, 1987, re: Policy on the Cargo Handling Contract System.

1.3    PPA Board Resolution No. 1797, as adopted on 11 October
1999, re: Revised Delegation of Authority for Operations Office.

2.         SCOPE

This Order shall govern the public bidding and comparative
evaluation in the award of cargo handling services in government ports
under PPA jurisdiction.

3.         OBJECTIVES

3.1    To improve the conduct of public bidding and the procedures
on comparative evaluation in the award of cargo handling services.

3.2    To serve as guide in the conduct of public bidding and comparative evaluation for cargo handling and related services.

4.         POLICY STATEMENTS

4.1    Cargo handling services shall be subject to public bidding or comparative evaluation.

4.2    Contract for cargo handling services of more than three (3) years shall be awarded thru public bidding.

4.3    Cargo handling permits of three (3) years and below in
ports where the average annual cargo throughput for the last five (5)
years did not exceed 30,000 metric tons and the operations is primarily
manual shall be awarded thru comparative evaluation.

5.         GUIDELINES FOR PUBLIC BIDDING

5.1    When To Conduct Public Bidding – The Port Manager
concerned shall recommend to the District Manager the conduct of the
public bidding for cargo handling services at least six (6) months
before the expiry of the contract and a comparative evaluation at least
three (3) months before expiry of the permit to operate.

5.2    Prequalification, Bids and Awards Committee (PBAC) and Its Functions

5.2.1    Constitution of the PBAC – A PBAC is hereby
constituted for the conduct of public bidding for cargo handling
services with the following members or as may be determined by the
General Manager:

5.2.2    Functions of the PBAC – The PBAC thus constituted shall have the following functions:

a)         Prepare the Terms of Reference (TOR) and the
Instructions to Bidders (ITB) for the specific port subject to bidding,
using as guide the pro-forma TOR and the ITB provided in Annex “A” and
“B,” respectively.

b)         Prepare bid documents, forms and related requirements.

c)         Cause the publication of the “Invitation To
Prequalify And To Bid” in newspaper of general/national circulation for
ports with contracts of five (5) years and above and in local newspaper
for other ports with contracts of less than five years.

d)         Determine the cost of bid documents and forms to be paid by the interested applicants.

e)         Review the completeness of documentary requirements
and evaluate the same using the prequalification/selection factors.

f)          Send appropriate notices to prequalified applicants and predisqualified bidders.

g)         Receive sealed bids for the “Technical Offer” and the “Financial Offer.”

h)         Open, initial/sign all pages of the bids and evaluate the same.

i)          Recommend the winning bidder to the General Manager for approval.

j)          Send “Notice of Award” upon approval of the General
Manager to the winning bidder and inform the losing bidder/s including
the return of unopened bids and bidder’s bonds.

k)         Prepare the cargo handling contract using the
suggested pro-forma contract attached as Annex “C ” hereof for review
and approval by Head Office pursuant to the “Revised Delegation of
Authority.”

l)          Send the corresponding “Notice to Commence Operations” to the winning bidder.

m)        Promulgate necessary supplementary issuances pertinent
to the bidding process to address peculiar conditions and situations in
the port.

n)         Keep records of its proceedings.

o)         Perform other PBAC-related functions as may be urgent
and necessary to carry out the expeditious conduct of the bidding.

5.2.3    Designation of the PBAC Secretariat – The Chairman of the PBAC shall designate a Secretariat to assist in carrying out the tasks and functions of the PBAC.

5.3    Bidding Procedures – The procedures in the conduct of any public bidding for cargo handling services shall be as follows:

5.3.1  Invitation to Bid and Prequalify – The PBAC shall
cause the publication of the “Invitation to Prequalify and Bid” in a
newspaper of general/national circulation for a bidding of cargo
handling services in ports with contracts of five (5) years and above,
and in local newspapers for other ports with contracts of less than 5
years, at least once a week for two (2) weeks. At the same time, copies
of the “Invitation” shall be posted in conspicuous places at the PDO,
PMO and the port or terminal subject to bidding.

5.3.2  Prequalification Forms – The PBAC shall provide interested bidders with “PB Form 1” for purposes of prequalification for the public bidding.

5.3.3  Prequalification of Interested Bidders – The PBAC
shall prequalify responding bidders by evaluating their
prequalifications using, among others, such factors like completeness
and authenticity of required legal financial and other documents
submitted, minimum requirements for paid-up capital, working capital and
bank deposit (where applicable), primary purpose of the company/firm
and other relevant information and data to establish that such
applicants are qualified to participate in the public bidding.

5.3.4  Bid Forms – The PBAC shall provide the corresponding
forms to the prequalified bidders “PB Form 2” for the Technical Offer
and “PB Form 3” for the Financial Offer after payment of the prescribed
fees.

5.3.5  Pre-Bid Conference – The PBAC shall conduct pre-bid
conference/s with prequalified bidders to discuss the requirements and
the conduct of the public bidding, including the “floor” estimate for
the Financial Offer.

5.3.6  Submission of Technical and Financial Bids – The
prequalified bidders shall be required to submit two (2) separate sealed
envelopes each for the “Technical Offer” using “PB Form 2” with all its
document requirements therefore and the “Financial Offer” using the “PB
Form 3”, on the date, time and place prescribed for submission.

5.3.7  Bid Security/Bond – The bid security in the form of
cash or manager’s/cashier’s check in the name of PPA encashable in venue
to be prescribed by PBAC shall be included in the envelope containing
the Financial Offer. This is to guarantee that the winning bidder, if
awarded, shall enter into a contact with the Authority.

5.3.8  Floor and Ceiling Estimates for Financial Offer –
The “ceiling” estimate shall not be announced/revealed by the PBAC until
immediately before the opening of sealed Financial Offer.

5.3.9  Opening and Evaluation of Technical and Financial Offers
– On the date specified for the opening of bids, the PBAC shall open,
review and evaluate the Technical and Financial Offers and determine
whether the technical and financial capability and other bidding
requirements comply with the set criteria to select the most qualified
bidder to manage and operate such services in the port subject to
bidding.

5.3.10            Notification of Results of the Public Bidding
– The PBAC shall formally notify the winning bidder and all the losing
bidders of the results of the bidding. The bid bonds of bidders who
ranked second and third shall be returned only after the winning bidder
has entered into a contract with PPA.

5.3.11            Notice of Award – The PBAC shall prepare
the corresponding resolution, notice of awards, contract and all
pertinent documents attendant thereto and forward the same to the
General Manager, thru the Assistant General Manager for Operations.

The corresponding Notice of Award shall be forwarded to the
winning bidder after the approval of the General Manager of the result
of the bidding.

5.3.12            Failure/Refusal to Enter Into Contract –
Failure or refusal by the winning bidder to enter into contract within
the specified time shall cause the nullification of the award,
disqualification of the winning bidder to any subsequent public bidding
for cargo handling services and forfeiture of the bid security in favor
of the Authority.

5.3.13            Consideration for Next Ranked Bidder/s –
In the event of refusal, inability or failure of the winning bidder to
make good its bid by entering into contract with the Authority within
the specified time, the second ranked bidder may be considered for award
provided that it shall match the bid or offer of the former. This rule
may likewise apply to the third ranked bidder in case the second ranked
bidder refuse. Otherwise, the cargo handling services shall be
advertised anew for public bidding.

5.4    Bid Information, Data and Documents

5.4.1  Terms of Reference (TOR) – The TOR shall define the
scope of the undertakings, rights, obligations and responsibilities
expected from both the Authority and the winning bidder. The suggested
pro-forma TOR in Annex “A” hereof may serve as guide for the PBAC in
preparation thereof.

5.4.2  Instructions to Bidders (ITB) – The ITB shall
contain all PPA requirements, procedures and instructions for the
bidding process to be complied with by interested bidders. The suggested
pro-forma ITB in Annex “B” hereof may serve as guide for the PBAC in
the preparation thereof.

5.4.3  Pro-Forma Cargo Handling Contract – The suggested
pro-forma contact (Annex “C”) may be used by the PBAC in the preparation
of the corresponding cargo handling contract to be signed by and
between the Authority and the winning bidder.

5.4.4  Bid Information, Data and Forms – In addition to the
foregoing documents, the following information, data and bid forms
shall be provided, if available, to prequalified bidders:

a)    Fees, rates and charges collectible by the cargo handling operator,

b)    Cargo and vessel traffic of the port for the last ten (10) years,

c)    Gross cargo handling revenue of the port for the last five (5) years,

d)    Physical description and/or plan layout of the port or terminal,

e)    Cargo handling service productivity rate per commodity type and mode of handling obtaining in the port,

f)     Bid forms (PB Form 2, PB Form 3 & PB Form 4), and

g)    Other data relevant and necessary for the bidding.

5.5    Selection Factors for Public Bidding – The PBAC
shall formulate and submit for the approval of the General Manager,
appropriate selection factors depending on the requirements and
characteristics of port and cargo handling operations of the port
subject to public bidding

5.6    Negotiated Award of Contract

5.6.1  Conditions for Negotiation – Negotiated award of
cargo handling contract may, subject to the approval by the General
Manager, be resorted to by the PBAC only when there is failure of public
bidding for two (2) times. There shall be a failure of public bidding
when anyone or more of the following instances exists:

1.    No interested bidder responded to the Invitation to Prequalify and Bid.
2.    Only one (1) bidder responded to the said invitation.
3.    None of the interested bidders who responded is prequalified.
4.    Only one (1) interested bidder is found to be prequalified.
5.    None of the prequalified bidders submitted the Technical and Financial Proposals/Offers.
6.    Only one (1) of the prequalified bidders submitted both the Technical and Financial Proposals/Offers.
7.    None of the Technical and Financial Proposals submitted by the prequalified bidders is responsive and/or complying.
8.    The winning bidder eligible for award refused or failed to enter into contract with the Authority.

5.6.2  Procedures of Negotiation – Subject to the approval of
General Manager or the Board, the PBAC may negotiate for the award of a
cargo handling contract in the following cases:

a)      Where only one (1) interested bidder is prequalified, the
negotiation may be with the only prequalified bidder first. If there is
none, or if it failed, negotiation may be with the prequalified bidder
who responded with the second prequalification, and if none, or if it
failed, the negotiation may be with the prequalified bidder who
responded in the first prequalification, provided that the prequalified
bidders considered for negotiation are qualified to undertake the cargo
handling services as called for in the bid documents.

b)      Where there has been a failure of bidding, the negotiation
may be first with the highest responsive evaluated bid but whose
evaluated financial bid is lower than the approved financial bid. If the
foregoing situation does not occur, the negotiation may first be with
the bidder with the best technical bid, and so on, until the award of
the contract.

c)      In the event that no negotiation can be made under the
conditions aforementioned, or no award resulted under the same, the PBAC
may invite the existing operators or other operators of similar port to
submit their proposal in accordance with the guidelines, provided that
those invited have very satisfactory performance.

d)      The procedure in the submission of the proposals and the
documents to be submitted under the negotiated award may still be those
provided in these guidelines. However, the submission of required
documents can be under the one (1) stage, one (1) envelope system and
the evaluation can be done on a one (1) stage basis.

e)      Under negotiated award, the approved financial bid/offer
used in the bidding may not be required for purposes of award. The
financial consideration as basis for the award may be agreed upon
between the PBAC and the negotiating bidder.

f)       Unless the General Manager designates a negotiating
committee, the PBAC may hall be the designated negotiator for PPA. The
agreed financial consideration may be recommended for approval. Upon the
approval of the financial consideration, the Notice of Award may be
issued. All the succeeding procedures and documents required to be
submitted, may now be in accordance with the pertinent provisions of
these guidelines.

6.         GUIDELINES FOR COMPARATIVE EVALUATION

6.1    Constitution of a Comparative Selection and Evaluation
Committee (COSEC) – The Comparative, Selection and Evaluation Committee
(COSEC) is hereby constituted for the conduct of comparative evaluation
in the PMO concerned with the following members or as may be determined
by the General Manager.

6.2    Designation of the COSEC Secretariat – The Chairman shall
designate and constitute a Secretariat to assist in carrying out the
task and functions of the COSEC.

6.3    Duties and Functions of the COSEC

6.3.1  Prepare Terms of Reference, forms and other documents
required for the comparative evaluation using the TOR and forms as guide
in the preparation thereof.

6.3.2  Determine and formulate the selection factors.

6.3.3  Determine the cost of the evaluation documents and forms to be paid by the interested applicants.

6.3.4  Evaluate the documentary requirements based on the selection factors provided in Annex “E”.

6.3.5  Recommend the winning applicant-offeror, either to the Port
Manager or District Manager, pursuant to the existing RDA of the
Operations office.

6.3.6  Keep records of all its proceedings.

6.4    Procedures for Comparative Evaluation – The COSEC shall:

6.4.1 Invite interested applicants for the comparative evaluation
process by proper publication of at least two (2) times within two (2)
weeks in local newspapers and posting appropriate announcements in
conspicuous places in the PMO, Terminal Management Office (TMO) and in
the port subject to the selection process, for a period of two (2)
consecutive weeks.

6.4.2 Conduct pre-selection meeting/s to discuss the procedures and requirements of the selection process.

6.4.3 Provide corresponding forms after payment of the prescribed fees for such purpose.

6.4.4 Receive the evaluation documents and offers from interested applicants within the prescribed date and time.

6.4.5 Review, evaluate and select the most qualified applicant
using the comparative evaluation factors prescribed and approved for
such purpose.

6.4.6 Prepare the corresponding contract or permit with all its
documentary requirements for review and approval, either by the Port
Manager, the District Manager or AGM for Operations, pursuant to the new
RDA of the Operations Office.

6.4.7 Notify the winning applicant-offeror and the other applicants of the result of the comparative evaluation conducted.

6.4.8 Whenever applicable and appropriate, use as reference the
guidelines contained in Section 5 hereof for the conduct of public
bidding.

7.         RECORD OF PROCEEDINGS – The PBAC and
COSEC shall record all its proceedings of the bidding and the
comparative evaluation selection processes. A report of such proceedings
shall be submitted together with the cargo handling contract or permit
to operate to concerned offices of the Authority.

8.         ISSUANCE OF SUPPLEMENTAL REGULATIONS –
The General Manager may promulgate such supplementary regulations and
additional guidelines to address peculiar and existing conditions in the
port which are necessary for the efficient and expeditious conduct of
the public bidding or comparative evaluation.

9.         VENUE OF COURT CASES RESULTING FROM PUBLIC BIDDING
– The venue of any action or case arising from the conduct of public
bidding shall be laid solely and exclusively with the proper court in
the place where the Port District Office (PDO) is located, which has
jurisdiction over the port subject to bidding.

10.       REPEALING CLAUSE – PPA Admin. Order No.
3-90 dated 14 May 1990 is hereby amended by substitution and all PPA
policies, regulations and other issuance or parts thereof which are
inconsistent with or contrary to any of the provisions of this Order
shall be deemed repealed or modified accordingly.

11.       EFFECTIVITY – This Order shall take effect fifteen (15) days after publication in a newspaper of general/national circulation.

For the guidance compliance of all concerned.

Adopted: 15 Feb. 2000

(SGD.) JUAN O. PEÑA
General Manager