Contract Administration - Topic 7 Framework Agreement.pdf

Contract Administration

1. FRAMEWORK
AGREEMENT
This learning module was developed by the Government Procurement Policy Board –Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.

2. This learning module was developed by the Government Procurement Policy Board –Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
MODULE OBJECTIVES
Attheendofthismodule,prospectiveGPPBRecognizedTrainersshallbeableto:
IDENTIFYthescope,procedure,andconditionsinordertoutilize
frameworkagreementeffectively;
ASSOCIATEtheoperationalneedsthatmaybeprocuredthrough
frameworkagreement;
REVIEWtheactualimplementationofframeworkagreementin
othergovernmentinstrumentalities;and
DISCUSSthemoduleFrameworkAgreementtoprospective
traineeswithutmostconfidence.
DETERMINE whatdocumentsneedtobepreparedfora
successfulprocurementthroughframeworkagreement;
INGEGRATEtheentireprocessandproceduresfromprocurement
planningtoactualcontractimplementation;

3. GENERAL CONCEPTS
GENERAL CONDITIONS
PROCUREMENT PLANNING
FRAMEWORK AGREEMENT PROCESS PROPER

4. GENERAL
CONCEPTS

5. Repeatedly required, but by their
nature, use, or characteristic, the
quantity or exact time of need cannot
be accurately pre-determined
which are not advisable
to be carried in stock
APPLICABILITY
5

6. Amendments to the
Guidelines to the Use of
Ordering Agreement
Dated 27 Jan 2012
BACKGROUND & TIMELINE
6
Dated 01 Apr 2005
Guidelines for
Ordering Agreement
Dated 10 Apr 2017
Guidelines for
Framework Agreement
Guidelines for
Framework Agreement
for All Procuring Entities
Dated 10 Dec 2019

7. ✔Writtenagreementbetweenaprocuringentity
andasupplierorserviceprovider
✔Termsandconditionsfor“Call-Offs”
✔Optioncontracttoplaceanorderforanyofthe
goodsorservicesidentifiedintheFramework
AgreementListornotbuyatall
✔Withinaminimumperiodofone(1)yeartoa
maximumperiodofthree(3)years.
WHAT IS A FRAMEWORK AGREEMENT?
7

8. KNOWLEDGE
CHECK
This learning module was developed by the Government Procurement Policy Board –Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.

9. FrameworkAgreementisapplicableto:
a.Goods
b.CivilWorks
c.Consulting
d.All
This learning module was developed by the Government Procurement Policy Board –Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.

10. FrameworkAgreementisapplicableto:
a.Goods
b.CivilWorks
c.Consulting
d.All
This learning module was developed by the Government Procurement Policy Board –Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.

11. TheobjectiveofanFAistodelivergoodsandservicestothepublicadministration,
throughtherationalizationofthepublicprocurementprocessandleveragingthe
powerofdemand,supplyandCentralPurchasingBodies(CPBs).
GUIDING PRINCIPLE
11
Source:ManualonFrameworkAgreementbyOECD

12. GENERAL
CONDITIONS

13. GENERAL CONDITIONS
13
BACmustdeterminethatenteringina
FrameworkAgreementismore
PRACTICAL
ECONOMICAL
ADVANTAGEOUS for the
Procuring Entity

14. GENERAL CONDITIONS
14

15. GENERAL CONDITIONS
15

16. GENERAL CONDITIONS
16

17. GENERAL CONDITIONS
17

18. PROCUREMENT
PLANNING

19. STAGES OF
FRAMEWORK
AGREEMENT
19
Source:ManualonFrameworkAgreementbyOECD

20. COMMON SUBJECTS OF FA
20
Source:ManualonFrameworkAgreementbyOECD

21. COMMON SUBJECTS OF FA
21
Source:ManualonFrameworkAgreementbyOECD

22. PROCUREMENT PLANNING
22
✔Encourageparticipationandcompetition
✔FrameworkAgreementListbasedon:
a.HistoricalData
b.NeedsAnalysis
c.MarketStudyestablishingABCforeach

23. PROCUREMENT PLANNING
23
✔Maxquantityofitemsorservicesshallbe
determinedbasedonexpectednumberor
outputstoberequiredshouldtheneedarises.

24. FRAMEWORK AGREEMENT LIST
24
1.Typeandnatureofeachitemorservice;
2.TechnicalSpecificationsorScopeofWork;
3.Typeandnatureofeachitemorservice;
4.TechnicalSpecificationsorScopeofWork;
5.Maximumquantityofitemsorservices;
6.Estimatedcostperitemorservice;
7.TotalABCincludingbudgetaryallotmentspertypeof
productorservice;
8.ExpecteddeliverytimeframeafterreceiptofaCall-Off;and
9.Otherappropriateinformationasmaybenecessary.
ABC
MYCA

25. SAMPLE FRAMEWORK AGREEMENT LIST
25
FRAMEWORK AGREEMENT LIST
(Name of Agency)
Item/ Service Cost per item or serviceMax Quantity
Total Cost per
Item
TOTAL (Approved Budget for
the Contract)
Expected delivery
timeframe
Remarks Indicate here any other appropriate information
Within [no. of days] cd upon issuance of Call-off

26. FRAMEWORK
AGREEMENT PROCESS

27. COMPETITIVE BIDDING
27
TheprocurementofgoodsandservicesunderaFrameworkAgreement
shallbeconductedfollowingtheprocedureforCompetitiveBidding
providedinRANo.9184anditsrevisedIRR.
SINGLE STAGE, TWO-ENVELOPE PROCEDURE
BAC to prepare technical specifications or scope of
work for every item, and should indicate the ff:
Invitation to Bid :
Indicate if
Framework
Agreement is for a
single or multi-year
Framework
Agreement.

28. COMPETITIVE BIDDING
28
Invitation to Bid
Indicate if Framework
Agreement is for a
single or multi-year
Framework
Agreement.
For Multi-Year Framework
Agreement
SLCC
NFCC
Bid Security
Bid Docs Fee
Protest Fee
ABC for
the first
year shall
be
BASIS

29. PROCEDURES
29
SYFA -ONE YEAR
Outright determine the LCRB
MYFA –TWO TO THREE YEARS
Award option contract in the form of a
Notice to Execute Framework
Agreement
Actual purchase through issuance of
Call-Off
INIITIAL submission of technical and
financial bid offer and INITIAL evaluation
Issue and execute Notice to Execute
Framework Agreement to ALL
complying bidders
Determination of LCRB through Mini-
Competition
Bidders to submit best financial bid on
pre-scheduled date

30. PROCEDURES
30
CONVERT TO SYFA -ONE
YEAR
MYFA –TWO TO THREE YEARS
INIITIAL submission of technical and
financial bid offer and INITIAL evaluation
Issue and execute Notice to Execute
Framework Agreement to ALL
complying bidders
Determination of LCRB through Mini-
Competition
Bidders to submit best financial bid on
pre-scheduled date
IF ONLY ONE PASSED
INITIAL EVALUATION

31. ENTERING INTO A FRAMEWORK AGREEMENT
31
Submission of a
Performance Security
orPerformance
Securing Declaration
(Computation shall be based on
the total contract price)
Within ten (10) calendar
days from receipt of the
Notification to Execute a
Framework Agreement
Enter into a
Framework Agreement
for an amount of
One Peso
paid by PE

32. INCLUSIONS IN FRAMEWORK AGREEMENT
32
⮚FrameworkAgreementList
⮚Provisionthattheperfectionoftheactualprocurement
contractshallbereckonedfromtheexecutionofthe
Call-Offs
⮚StatementthatupontheexecutionoftheCall-Offs,all
rulesandguidelinesgoverningimplementationof
procurementcontractsunderRANo.9184andits
revisedIRRshallbeapplicable

33. PRICE BASIS
33
Actual priceof the bidder
SYFA -ONE YEAR MYFA –TWO TO THREE YEARS
Priceoffered in mini-
competition
Shall notstate or imply any agreement by the procuring entity to place future
contracts or make orders with the supplier or service provider
Nomodification of the Framework Agreement during its period shall be
allowed.

34. VALIDITY OF FRAMEWORK AGREEMENT
34
Shall be valid only for the period stated in
the bidding documentswhich, shall not
exceed three (3) yearsfrom the time the
Framework Agreement was entered into and
executed by the parties, and shall not be
extended beyond its lifetime

35. CALL-OFF
35
SYFA -ONE YEAR
IMMEDIATELYUPON
DETERMINATION OF NEED
MYFA –TWO TO THREE YEARS
AFTER MINI-COMPETITION, TO THE
LCRB
As many CALL-OFFs until maximum quantity is reached and aggregate
amount do not exceed total contract price
BAC may require delivery to multiple destinations or performance at
multiple locations.

36. FRAMEWORK AGREEMENT AS REFERENCE
36
⮚Cumulativeamountofcall-offswillbethetotalcontract
amountanditshallbeconsideredasone(1)
completedcontract.
⮚DateappearingintheCertificateofAcceptanceissued
forthelastdeliverywillbeconsideredasthedateof
completionofthecontract
⮚OnlythoseundelivereditemsintheCall-Offsshallbe
includedintheStatementofAllOngoingGovernment
andPrivateContracts.

37. IMPLEMENTATION AND TERMINATION
37
⮚Extensionoftimeforthedeliveryorperformanceshall
bemadeinwritingandpriortothedateofdeliveror
performance,subjecttopriorapprovalafter
considerationofreasonableandjustifiablecauses.
⮚Liquidateddamagesofatleastequaltoone-tenthof
onepercent(.001)ofthecostoftheunperformed
portionforeverydayofdelay.
⮚PEmayrescindonceliquidateddamages=10%of
totalamountofitemsorderperCall-Off

38. IMPLEMENTATION AND TERMINATION
38
Automatic Termination under the following conditions:
Total
maximum
quantity
specified in
FA has been
exhausted
Specific
duration of
the FA has
expired

39. REPEAT ORDER
39
Availed only within 6 monthsfrom the date of the last or final Call-Off for a
specific item where the maximum quantity has been exhausted or from the
expiration of the Framework Agreement.
Limited to twenty five percent (25%) maximum allowable quantity based
on the aggregate quantity of actual items ordered and delivered
Subject to conditions under Section 51 of R.A. No. 9184
ThePEhasexhaustedthemaximumquantityforthesameitem
TheFrameworkAgreementhasexpired

40. KNOWLEDGE
CHECK
This learning module was developed by the Government Procurement Policy Board –Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.

41. DOH Region III posted SYFA for
medicines. Three submitted their
bids, only one (XYZ Medicine Corp.
passed the BAC evaluation. What
will be the significant next step?
This learning module was developed by the Government Procurement Policy Board –Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.

42. XYZ Medicine Corp. submitted their bid to
DOH Region I BAC’s MYFA procurement for
medicines. During evaluation of bids, what
should be the basis of the Statement of all
Ongoing and Government and Private
Contracts of the DOH Region I BAC?
This learning module was developed by the Government Procurement Policy Board –Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.

43. XYZ Medicine Corp. submitted their bid to
DOH Region I BAC’s MYFA procurement for
medicines. During evaluation of bids, what
should be the reference document of the
DOH Region I BAC in assessing the SLCC if
the bidder used his contract with DOH
Region III earlier?
This learning module was developed by the Government Procurement Policy Board –Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.

44. SAMPLE ITB FROM COA RO VII
44

45. SAMPLE FA LIST
45

46. SAMPLE TECH SPECS
46

47. RECENT COA FINDING
47

48. OPEN FORUM
This learning module was developed by the Government Procurement Policy Board –Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.

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