1.         AUTHORITY

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:

Chairman	-           District Manager
Vice Chairman	-           Port Manager
Members	-           Manager, Legal Affairs Division -           Manager, Port Services Division -           Private Sector (nominated by the Port -           Management Advisory Council [PMAC])
Observer	-           COA Resident Auditor or Representative -           Head Office: Managers of POSD and LSD, or authorized representatives.

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.

Chairman	-	Port Manager
Vice Chairman	-	Manager, Legal Affairs Division
Members	-	Manager, Port Services Division
	-	Terminal Supervisor (PMO or TMO concerned)
Observer	-	COA Auditor of the PMO

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. PE A
General Manager