Deferring the Resolution on the Department of Public Works and Highways Department Order No. 97 Disallowing the Use of Bid Securing Declaration As Bid Security

October 25, 2013 GPPB RESOLUTION NO. 032-13 DEFERRING THE RESOLUTION ON THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS DEPARTMENT ORDER NO. 97 DISALLOWING THE USE OF BID SECURING DECLARATION AS BID SECURITY WHEREAS, Republic Act (RA) No. 9184, otherwise known as the "Government Procurement Reform Act" and its revised Implementing Rules and Regulations (IRR) took effect on 26 January 2003 and 2 September 2009, respectively; WHEREAS, Section 63 (b) of RA 9184 mandates the Government Procurement Policy Board (GPPB) to formulate and amend, when necessary, the IRR and the corresponding standard forms for Procurement; WHEREAS, Section 27 of RA 9184 provides that all bids shall be accompanied by a Bid Security, which shall serve as a guarantee that, after receipt of the Notice of Award, the winning bidder shall enter into contract with the Procuring Entity within the stipulated time and furnish the required performance security; DSCIEa WHEREAS, Section 27.2 of the revised IRR of RA 9184 prescribed the different forms of bid security that a bidder may post, to wit: (a) Cash or cashier's/manager's check issued by a Universal or Commercial Bank; (b) Bank draft/guarantee or irrevocable letter of credit issued by a Universal or Commercial Bank; (c) Surety bond callable upon demand issued by a surety or insurance company duly certified by the Insurance Commission as authorized to issue such security; or (d) any combination of the foregoing; WHEREAS, Section 27.5 of the revised IRR of RA 9184, as revised through GPPB Resolution No. 03-2012 recognized and allowed the submission of Bid Securing Declaration (BSD) as an alternative to the existing forms of Bid Security under the revised IRR, in order to enhance competition and bidders' participation, reduce transactional costs, and promote economy in procurement activities of government; WHEREAS, GPPB Resolution No. 25-2013 dated 30 August 2013 amended Sections 27.2 and 27.5 of the revised IRR of RA 9184, to mandate the inclusion of BSD in the forms of bid security that bidders may select to use in all procurement activities; WHEREAS, during the 7th Regular GPPB Meeting held on 25 October 2013, the Board was informed of Department of Public Works and Highways (DPWH) Department Order (D.O.) No. 97 which disallows the use of BSD as a form of bid security in all procurement activities of DPWH; WHEREAS, the GPPB noted that D.O. No. 97 is inconsistent with GPPB Resolution Nos. 03-2012 and 25-2013, and discussed the repercussions and options to address the concerns on the matter; aCTHEA NOW, THEREFORE, for and in view of all the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law and other executive issuances, hereby RESOLVE to confirm, adopt, and approve, as WE hereby confirm, adopt, and approve the following: a) INVITE the DPWH for a meeting to discuss D.O. No. 97 in relation to GPPB Resolutions Nos. 03-2012 and 025-2013; b) ADVISE the DPWH to hold in abeyance the implementation of D.O. No. 97 until a meeting is conducted resolving the matter. This Resolution shall take effect immediately. APPROVED this 25th day of October 2013 at Pasig City, Philippines. (Sgd.) ___________________________ ___________________________ DEPARTMENT OF BUDGET AND NATIONAL ECONOMIC AND MANAGEMENT DEVELOPMENT AUTHORITY (Sgd.) (Sgd.) _____________________________ _____________________________ DEPARTMENT OF EDUCATION DEPARTMENT OF ENERGY (Sgd.) ____________________________ _____________________________ DEPARTMENT OF FINANCE DEPARTMENT OF HEALTH (Sgd.) (Sgd.) ____________________________ _____________________________ DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT DEPARTMENT OF NATIONAL DEFENSE _____________________________ _____________________________ DEPARTMENT OF PUBLIC WORKS DEPARTMENT OF SCIENCE AND AND HIGHWAYS TECHNOLOGY (Sgd.) _____________________________ _____________________________ DEPARTMENT OF TRADE AND DEPARTMENT OF TRANSPORTATION INDUSTRY AND COMMUNICATIONS (Sgd.) ________________________________ PRIVATE SECTOR REPRESENTATIVE Attested by: (SGD.) DENNIS S. SANTIAGO Board Secretary, GPPB Executive Director, GPPB-TSO <www.gppb.gov.ph/issuances/Resolutions/32-2013.pdf> last visited July 10, 2014 .