Procedure for the procurement of consulting service - DOH

MANUAL PROCEDURES FOR THE PROCUREMENT OF CONSULTING SERVICES
CONTRACT PRICE AND PAYMENT
Are contract prices fixed?
According to the Revised Guideline for Contract Price Escalation dated 28 September 2008, no price
escalation for consulting services shall be allowed. For the given scope of work in the contract as awarded,
the price must be considered as a fixed price. 2
How are contract prices to be denominated?
All contract prices must be denominated and payable in Philippine currency, and this shall be stated in the
bidding documents (Section 61.1 of the revised IRR).
However, the general rule is not without exception. As stated in the above cited provision, the procuring
entity may provide in the Bidding Documents that obligations may be paid in foreign currency, subject to the
guidelines issued by the GPPB. Should the Procuring Entity receive bids denominated in foreign currency,
the same shall be converted to Philippine currency based on the exchange rate officially prescribed for
similar transactions as established by the BSP on the date of the bid opening.
When shall payments be made?
Any kind of payment, including advance and progress payments, must be made by the Procuring Entity as
soon as possible, but in no case later than forty-five (45) days after the submission of a request for
payment, accompanied by documents submitted pursuant to the contract, and upon fulfillment of other
obligations stipulated in the contract. The Procuring Entity must also ensure that all accounting and auditing
requirements are met prior to payment. Only the portion of a claim that is not satisfactorily
supported/accepted may be withheld from payment subject to the usual accounting and auditing rules and
regulation.
The final payment must be made only after the consultant submits its final report and such report is
approved as satisfactory by the Procuring Entity.
In what currency shall payments be made? 3
Payments must be made in the Philippine currency.
2 For FAPs, to adjust the remuneration for foreign and/or local inflation, a price adjustment provision should be included in the
contract if its duration is expected to exceed eighteen (18) months. Contracts of shorter duration may include a provision for price
adjustment when local or foreign inflation is expected to be high and unpredictable.
3 For FAPs, RFPs should clearly state that firms may express the price for their services, in any fully convertible currency. If the
consultants wish to express the price as a sum of amounts in different foreign currencies, they may do so, provided the proposal
includes no more than three (3) foreign currencies. The Procuring Entity may require consultants to state the portion of the
price representing costs in the currency of the Procuring Entity’s country. Payment under the contract should be made in the
currency or currencies in which the price is expressed in the proposal.
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