One of the most profitable business ventures you can explore for growth is the business-to-government (B2G) sales model.
In the Philippines, the Philippine Government Electronic Procurement System (PhilGEPS) is the online government portal that provides B2G opportunities to local SMEs. Hundreds of bidding notices are posted daily; you only need one awarded to become an official government supplier.
To participate in government bidding, you’ll have to complete PhilGEPS registration. If you haven’t registered yet, check out our comprehensive guide to PhilGEPS registration before proceeding.
To guide you through bidding and increase your chances of winning a PhilGEPS opportunity, here’s a comprehensive guide to the PhilGEPS bidding process.
What is the PhilGEPS bidding process?
The PhilGEPS bidding process can go differently depending on your type of membership. Still, all bidders often go through the same five (5) steps. Let’s discuss each of them below.
Step 1. Buyer-Supplier Search
First, you’ll need to look for a PhilGEPS bidding notice to bid for in the PhilGEPS opportunities section. Bidding notices are the posts from government agencies and LGUs all over the country. They contain the procuring agency’s name, required product or service, procurement budget, and other details that a potential merchant needs to know.
While you can search by category, agency, or keyword, the PhilGEPS portal takes a lot of time to navigate. You’ll also have to search the portal daily since PhilGEPS doesn’t have an alert system. Thus, to find projects faster and get email alerts for new projects that suit your business, you can use Project Finder instead.
Project Finder is First Circle’s free database of PhilGEPS and LGU opportunities. Here’s how to set a weekly or daily email alert for keywords and filters related to your business:
- On your browser, visit https://my.firstcircle.ph/project-finder.
- Enter your preferred keywords and filters, then click Apply.
- After getting your search results, click the Get Alerts for This Search button.
- Enter your email address, choose between Daily or Weekly frequency, and click Create Alert.
Things to note when viewing PhilGEPS opportunities
Consider if the following details on the bid notice matches your business capacity:
- Approved budget for the contract (ABC)
- Delivery period and area
- Document Request List, discussed further on Step 3
- Procurement Mode
If you are a PhilGEPS Red Member, you can only bid for contracts with the following Procurement Modes:
- Small Value Procurement
- Direct Contracting
- Take-Over of Contracts
- Scientific, Scholarly, or Artistic Work, Exclusive Technology and Media Services
- Highly Technical Consultants
- Lease of Real Property
In addition, Red Members cannot bid for budgets exceeding Php 1 Million, and contracts requesting a PhilGEPS Certificate of Registration. To bid for them, you need to upgrade to a PhilGEPS Platinum Membership.
Once you find a suitable bidding notice, reach out to the contact person listed in the notice to ensure it is still open, and to verify if your business can handle the project specifications.
Step 2. Pre-Bidding Conference
A Pre-Bidding Conference is held for contracts with an approved budget of Php 1 Million or more. Here, bidders can further verify the project specs, terms, and requirements.
The Bids and Awards Committee (BAC), which represents the contract’s procuring entity, normally includes the conference details on the bidding notice. The conference is held over video conferencing or in-person at the BAC’s chosen venue.
By attending the conference, you’ll get to know your potential competitors, the project timeline, and possible revenue should you win the bid.
Step 3. Purchase & Submission of Bidding Documents
Seasoned government suppliers describe this step as the most challenging part of bidding. Bidding documents, also known as eligibility documents, are PhilGEPS standard forms that you need to purchase, download, and submit to the BAC. They can run up to a hundred pages or more, and the document fees vary per contract. The fees are non-refundable unless there is a Failure of Bidding declaration for the project.
In general, the documents are split into the following types:
“Class A” Documents
- Legal and business documents. These include SEC, DTI, or CDA registration; Mayor’s/Business Permit; and BIR tax clearance.
- Technical documents. Statement of your ongoing government and private contracts, if any; your Single Largest Completed Contract (SLCC); PCAB license for infrastructure; Bid Security; among others.
- Financial documents. Audited Financial Statement; computation of Net Financial Contracting Capacity (NFCC). In lieu of the latter, you may submit a committed Line of Credit — you can get this by availing First Circle’s PhilGEPS Project Financing for government suppliers.
- PhilGEPS Sworn Statement, which can be downloaded from the portal
- Extra documents requested by BAC. They are listed under the Document Request List section of the bidding notice, such as bid forms, cost analysis forms, and other technical documents.
“Class B” Documents
- Valid Joint Venture Agreement or duly notarized statements from potential joint venture partners
- PhilGEPS Certificate of Registration, if applicable
- Other documents that may be requested by the BAC
Important: When filling out the Bid Form, the Approved Budget for the Contract (ABC) is the upper limit of the accepted bid price. Bids higher than the ABC are automatically disqualified.
How to submit PhilGEPS bids
Bids are submitted to the BAC in 2 separate envelopes or folders:
- Technical Component. These are the “Class A” and “Class B” requirements above, unless stated otherwise by the BAC.
- Financial Component. These are the additional documents requested by the BAC, such as the bid form.
There are two ways to submit your bid:
- In-Person. Send your 2 envelopes, marked and sealed, directly to the BAC via their address.
- Electronic. If the BAC allows it, send your password-protected Bidding Documents inside 2 compressed archive folders via PhilGEPS portal or official BAC details. You will disclose the passwords during bid opening on the next stage.
The final documents and submission guidelines will ultimately depend on your business type, government contract, and BAC requirements. Thus, always check with the BAC or Section 23-25 of the 2016 Revised Implementing Rules and Regulations of R.A. 9184 before sending.
Bids are automatically disqualified if sent past the submission deadline, or if it has missing signatures, insufficient data, or unmarked content. If you have successfully sent your bid, a written confirmation should be issued to you by the BAC within seven days from sending.
From here, you are not allowed to communicate with any BAC member regarding matters connected to your bid, unless you are asked to issue a written clarification.
Step 4. Opening & Evaluation of Bids
The BAC will publicly open and evaluate all bids received immediately after the deadline, either in-person or via video conferencing. It is often attended by the BAC, observers, and bidders. It’s best to attend in case you need to file an appeal. Depending on the contract, the evaluation can take a few hours or up to 21 days. The project is awarded to the lowest bidder who passes the technical and financial requirements of the bid.
If you receive a notice of Lowest Calculated Bid or Highest Rated Bid, congratulations! This means you’ve won the bid. The BAC will conduct a post-qualification of your bid, which takes up to twelve days. Meanwhile, you will be asked to submit a few additional requirements from Section 34 of the 2016 Revised Implementing Rules and Regulations of R.A. 9184
However, if you were ineligible at any stage of the process but submitted the lowest bid, you can file a written appeal with BAC. They will then take a few days to consider your appeal before finally releasing the Notice of Award.
Step 5. Notice of Award & Project Execution
A Notice of Award is issued by the head of the procuring entity to the winning bidder. The bidding is considered officially closed, and the bidding notice is added to the Recent Award Notices board in PhilGEPS.
Additional requirements may be requested by the BAC, but the next steps should be Contract-Signing and a Notice to Proceed from the procuring entity. As soon as the last one is completed, the winning bidder may proceed with purchase order or execution of the contract terms.
Ready to take on your first PhilGEPS bidding? The requirements and process may be lengthy and complicated, but the increased business sales and credibility your company will gain will be all worth it. Good luck with the bidding process!
Need business financing for the bidding process? Apply now for PhilGEPS Project Financing, First Circle’s funding option for government suppliers. Eligible clients receive a funding certification to strengthen bids, as well as longer payment terms that only start upon project completion.