Procedure for the procurement of consulting service - DOH

MANUAL PROCEDURES FOR THE PROCUREMENT OF CONSULTING SERVICES
If the sum of the different cost components is lower than the appropriation for the
procurement, then the ABC should be equal to the sum of the cost components. If the
resulting sum is higher than the appropriation, it is advisable to review the technical
specifications and the computation of the ABC. In any case, the ABC should not exceed
the appropriation.
In case of bid failure, the Bids and Awards Committee is obligated under Section 35 of the
revised IRR to conduct mandatory review and evaluation of the ABC, technical
specifications, terms and conditions included in the bidding documents. Based on its
findings, the BAC shall revise the terms, conditions, and specifications, and if necessary,
adjust the ABC, subject to the required approvals, and conduct re-bidding with readvertisement
and/or posting, as provided for in Section 21.2 of the revised IRR.
Under this new rule, ABC may be adjusted upward or downward without any
restriction/limitation if so warranted. It must be noted that under GPPB Resolution 07-
2005, only upward adjustment of the ABC from the original amount on the condition that
there has been two-failed bidding and previous modification of the terms, conditions, and
specifications of the project was allowed.
Furthermore, downward adjustment of the ABC may be considered after the first failed
bidding to reflect prevailing market prices and/or scope of work or suit actual field
conditions of the project.
3.3 HOW TO COMPUTE ABC
The cost of consultancy shall be computed on the basis of cost to the consultant of actual
services to be rendered by the consultant plus a reasonable level of management fee.
The amount of management fee depends on the complexity and magnitude of the project,
and other direct expenses associated to the undertakings.
The cost of consultancy shall consist of the following and shall be presented in the
agreement in like manner:
a. Remuneration Costs
These are the remuneration to be paid to the consultant‟s staff/personnel who are
directly engaged in the consulting services as per agreed manning schedule. It
covers the basic rates of the staff multiplied by a billing factor of the consulting
firm.
The umbrella organization of consultants shall, from time to time, disseminate
information on the rates or fees of consultants per expertise as guide to the BAC
and end-user during financial negotiation.
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