Procedure for the procurement of consulting service - DOH

More documents

Recommendations

Info

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. 116
DOH CUSTOMIZED PROCUREMENT MANUAL VOLUME 4 2010 What are the different types of consultancy contracts based on payment terms normally used? 1. LUMP SUM CONTRACT Lump sum contracts are used mainly for assignments in which the content and the duration of the services and the required output of the consultants are clearly defined. They are widely used for simple planning and feasibility studies, environmental studies, detailed design of standard or common structures, preparation of data processing systems, and so forth. Payments are linked to outputs (deliverables), such as reports, drawings, and bills of quantities, bidding documents, and software programs. Lump sum contracts are easy to administer because payments are due on clearly specified outputs. 2. TIME-BASED CONTRACT This type of contract is appropriate when it is difficult to define the scope and the length of the services, either because the services are related to activities by others for which the completion period may vary, or because the input of the consultants required attaining the objectives of the assignment is difficult to assess. This type of contract is widely used for complex studies, supervision of construction, advisory services, and most training assignments. Payments are based on agreed hourly, daily, weekly or monthly rates for staff (who are normally named in the contract) and on reimbursable items using actual expenses and/or agreed unit prices. The rates for staff include salary, social costs, overhead, fee (or profit), and, where appropriate, special allowances. This type of contract should include a maximum amount of total payments to be made to the consultants. This ceiling amount should include a contingency allowance for unforeseen work and duration, and provision for price adjustments, where appropriate. Time-based contracts need to be closely monitored and administered by the client to ensure that the assignment is progressing satisfactorily and that payments claimed by the consultants are appropriate. 3. RETAINER AND/OR CONTINGENCY (SUCCESS) FEE CONTRACT Retainer and contingency fee contracts are widely used when consultants are preparing companies for sales or mergers of firms, notably in privatization operations. The remuneration of the consultant includes a retainer and a success fee, the latter being normally expressed as a percentage of the sale price of the assets. 4. PERCENTAGE CONTRACT These contracts are commonly used for architectural services. They may be also used for procurement and inspection agents. Percentage contracts directly relate the fees paid to the consultant to the estimated or actual project construction cost, or the cost of the goods procured or inspected. The contracts are negotiated on the basis of market norms for the services and/or estimated staff-month costs for the services, or competitively bid. It should be borne in mind that in the case of architectural or engineering services, percentage contracts implicitly lack incentive for economic design and are hence discouraged. Therefore, the use of such a contract for architectural services is recommended only if it is based on a fixed target cost and covers precisely defined services (for example, not works supervision). 117
Page 3:
DOH Customized Procurement Manuals
Page 7:
Executive Summary The role of publi
Page 10 and 11:
MANUAL PROCEDURES FOR THE PROCUREME
Page 14:
SECTION 1 INTRODUCTION
Page 19:
SECTION 2 GENERAL PRINCIPLES ON CON
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
Page 29:
SECTION 3 PREPARING FOR PROCUREMENT
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
Page 42 and 43:
Page 44 and 45:
Page 47:
SECTION 4 PROCUREMENT OF CONSULTING
Page 50 and 51:
Page 52 and 53:
Page 54 and 55:
Page 56 and 57:
Page 58 and 59:
Page 60 and 61:
Page 62 and 63:
Page 64 and 65:
Page 66 and 67:
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81: MANUAL PROCEDURES FOR THE PROCUREME
Page 113 and 114: DOH CUSTOMIZED PROCUREMENT MANUAL V
Page 117 and 118: NEGOTIATED PROCUREMENT 1. NEGOTIATE
Page 127: SECTION 6 GUIDELINES ON CONTRACT IM
Page 143: SECTION 7 PERIOD OF ACTION ON PROCU
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186 and 187:
Page 188 and 189:
Page 190 and 191:
Page 192 and 193:
Page 194 and 195:
Page 196 and 197:
Page 199 and 200:
DOH CUSTOMIZED PROCUREMENT MANUAL V
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 259 and 260:
Page 261 and 262:
Page 263 and 264:
Page 265 and 266:
Page 267 and 268:
Page 269 and 270:
Page 271 and 272:
Page 273 and 274:
Page 275 and 276:
Page 277 and 278:
Page 279 and 280:
Page 281 and 282:
(SIGNATURE OVER PRINTED NAME) WITNE
Page 283 and 284:
Page 285 and 286:
Page 287 and 288:
Page 289 and 290:
Page 291 and 292:
Page 293 and 294:
Page 295 and 296:
Page 297 and 298:
Page 299 and 300:
Page 301 and 302:
Page 303 and 304:
Page 305 and 306:
Page 307 and 308:
Page 309 and 310:
Page 311 and 312:
Page 313 and 314:
show all

Procedure for the procurement of consulting service - DOH

Create successful ePaper yourself

Delete template?

Save as template?