Approving Amendments to Sections 27.2, 27.5 and 39.2 of the Revised IRR of R.A. No. 9184

August 30, 2013

GPPB RESOLUTION NO. 25-13

APPROVING AMENDMENTS TO SECTIONS 27.2, 27.5 AND 39.2 OF THE REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9184; THE PHILIPPINE BIDDING DOCUMENTS FOR GOODS, INFRASTRUCTURE PROJECTS AND CONSULTING SERVICES; AND, THE GUIDELINES FOR THE USE OF BID SECURING DECLARATION

WHEREAS, Section 63.1 (b) of Republic Act (RA) No. 9184 and its revised Implementing Rules and Regulations (IRR) authorize the Government Procurement Policy Board (GPPB) to formulate public procurement policies, rules and regulations, and amend, whenever necessary, the IRR;

WHEREAS, the posting of bid security is required to guarantee that a bidder will not withdraw its bid and will enter into a contract with the procuring entity upon award; and, the posting of performance security guarantees faithful performance of the winning bidder of its obligations under the contract;

WHEREAS, Sections 27.2, 27.5 and 39.2 of the IRR of RA 9184 and the Philippine Bidding Documents 1 (PBDs), including the Guidelines for the Use of Bid Securing Declaration, 2 vest upon the bidder the option to choose among any of the prescribed forms of bid and performance security that it will post with the procuring entity.

WHEREAS, in a meeting held on 09 July 2013, the Inter Agency Technical Working Group (IATWG) adopted the proposal of the Bureau of Internal Revenue (BIR) to grant the procuring entities the option to choose the forms of bid and performance securities and limit the same to two (2) forms of security that bidders will post;

WHEREAS, during the 5th Regular GPPB Meeting held on 30 July 2013, the Board discussed the matter, and, after careful deliberation, favorably approved the recommendation of the IATWG; cDIHES

WHEREAS, during the 6th Regular GPPB Meeting held on 30 August 2013, the GPPB-Technical Support Office sought clarification from the Board on how to proceed with the amendment of Section 27.2 of the IRR of RA 9184 in relation to use of Bid Securing Declaration. After thorough discussion and careful deliberation, the Board required the procuring entities to select and use Bid Securing Declaration in the identification of at least two (2) acceptable forms of bid security.

NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to confirm, adopt and approve, as WE hereby confirm, adopt and approve the following:

1. AMEND Sections 27.2, 27.5 and 39.2 of the IRR of RA 9184, as shown in Annex "A" hereof;

2. AMEND Clauses 12.1 (b) (i), 18.1 and 33.2 of the ITB and BDS of the PBDs for Goods; Clauses 12.1 (b) (i), 18.1 and 32.2 of the ITB and BDS of the PBDs for Infrastructure Projects; and Clauses 10.2 (a), 15.1 and 31.2 of the ITB and BDS of the PBDs for Consulting Services, as shown in Annex "B" hereof;

3. DELETE the following sentence under Article 2 on Guiding Principles under GPPB Resolution 03-2012, thus:

"The bidder shall have the option to use a Bid Securing Declaration or any other bid security in the form and amount enumerated under Section 27.2 of the IRR".

This resolution shall take effect immediately.

APPROVED this 30th day of August 2013 at Pasig City, Philippines. IETCAS

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Attested by:

(SGD.) DENNIS S. SANTIAGOBoard Secretary, Government Procurement Policy Board

ANNEX A

Revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184

 

Original	Amended
Section 27.2	Section 27.2
"The bid security shall be in an amount equal to a	"The procuring entity shall indicate in the
percentage of the ABC in accordance with the	Bidding Documents the acceptable forms of
following schedule:	bid security that bidders may opt to use, which
	shall include the Bid Securing Declaration
. . .	provided in Section 27.5 of this IRR and at
	least one (1) other form, the amount of which
For biddings conducted by LGUs, the prospective	shall be equal to a percentage of the ABC in
bidder may also submit bid securities in the form	accordance with the following schedule:
of cashier's/manager's check, bank draft/guarantee,
or irrevocable letter of credit from other banks	. . .
certified by the BSP as authorized to issue such
financial instrument.'"	For biddings conducted by LGUs, the
	procuring entity may also require bidders to
	submit bid securities in the form of . . .
Section 27.5	Section 27.5
In lieu of a bid security mentioned in Section	A Bid Securing Declaration is an undertaking
27.2 above, the bidder may submit a Bid	which states, among others, that the bidder
Securing Declaration that is an undertaking	shall enter into contract with the procuring
which states, among others, that the bidder shall	entity and furnish the required performance
enter into contract with the procuring entity and	security within ten (10) calendar days, or less,
furnish the required performance security within	as indicated in the Bidding Documents, from
ten (10) calendar days, or less, as indicated in the	receipt of the Notice of Award, and
Bidding Documents, from receipt of the Notice of	committing to pay the corresponding fine
Award, and committing to pay the corresponding	and be suspended for a period of time from
fine and be suspended for a period of time from	being qualified to participate in any
being qualified to participate in any government	government activity in the event it violates
activity in the event it violates any of the	any of the conditions stated therein as
conditions stated therein as required in the	required in the guidelines issued by the
guidelines issued by the GPPB.	GPPB. 3
Section 39.2	Section 39.2
"The performance security shall be in an amount	"The procuring entity shall indicate in the
be equal to a percentage of the total contract price	Bidding Documents at least two (2)
in accordance with the following schedule:	acceptable forms of performance security
	taken from two (2) categories below, that
. . .	bidders may opt to use, the amount of which
	shall be equal to a percentage of the total
For biddings conducted by LGUs, the prospective	contract price in accordance with the
bidder may also submit performance securities in	following schedule:
the form of cashier's/manager's check, bank
draft/guarantee, or irrevocable letter of credit	. . .
from other banks certified by the BSP as
authorized to issue such financial instrument.'"	For biddings conducted by LGUs, the
	procuring entity may also require bidders to
	submit performance securities in the
	form of . . .

 

 

ANNEX B

Philippine Bidding Documents for Goods, Infrastructure Projects and Consulting Services

Instructions to Bidders

Clause 12.1 (b) (i), ITB for Goods and Infrastructure Projects
Original	Amended
Unless otherwise indicated in the BDS, the first	Unless otherwise indicated in the BDS, the
envelope shall contain the following eligibility	first envelope shall contain the following
and technical documents:	eligibility and technical documents:
. . .			. . .
(b)	Technical Documents —	(b)	Technical Documents —
	(i)	Bid security in accordance with ITB		(i)	Bid security in accordance with ITB
		Clause 18. If the Bidder opts to submit			Clause 18. If the Procuring Entity
		the bid security in the form of:			requires the bidders to submit the
					bid security in the form of:
Clause 10. 2 (a), ITB for Consulting Services
The Technical Proposal shall contain the	The Technical Proposal shall contain the
following information/documents:	following information/documents:
(a)	Bid security as prescribed in ITB Clause 15.	(a)	Bid security as prescribed in ITB Clause
	If the Bidder opts to submit the bid security in		15. If the Procuring Entity requires
	the form of:		the bidders to submit the bid security in
				the form of:
Clause 18.1, ITB for Goods and Infrastructure Projects; and,
Clause 15.1, ITB for Consulting Services
The bid security in the amount stated in the BDS	The procuring entity shall prescribe in the
shall be equal to the percentage of the ABC in	BDS the acceptable forms of bid security that
accordance with the following schedule:	bidders may opt to use, which shall include
			the Bid Securing Declaration and at least
. . .			one (1) other form, the amount of which shall
			be equal to a percentage of the ABC in
For biddings conducted by LGUs, the prospective	accordance with the following schedule:
bidder may also submit bid securities in the form
of cashier's/manager's check, bank draft/guarantee,	. . .
or irrevocable letter of credit from other banks
certified by the BSP as authorized to issue such	For biddings conducted by LGUs, the
financial instrument.''''"	procuring entity may also require bidders to
			submit bid securities in the form of . . .
Clause 33.2, ITB for Goods; Clause 32.2, ITB for Infrastructure Projects; and,
Clause 31.1, ITB for Consulting Services
The performance security shall be denominated	The procuring entity shall prescribe at least
in Philippine Pesos and posted in favor of the	two (2) acceptable forms of performance
Procuring Entity in an amount equal to the	security taken from two (2) categories below
percentage of the total contract price in	that bidders may opt to use, denominated in
accordance with the following schedule:	Philippine Pesos and posted in favor of the
			Procuring Entity. . .
Bid Data Sheet
Clause 18.1, BDS for Goods and Infrastructure Projects; and,
Clause 15.1, BDS for Consulting Services
Original	Amended
The bid security shall be in the following amount:	The bid security shall be limited to Bid
			Securing Declaration and at least one (1)
. . .			other form in accordance with the following
			amount:
3.	Any combination of the foregoing
	proportionate to the share of form with	. . .
	respect to total amount of security.
				3.	Any combination of the foregoing
					proportionate to the share of form with
					respect to total amount of security.

 

Footnotes

1. Clauses 12.1 (b) (i), 18.1 and 33.2 of the Instructions to Bidders (ITB) and Bid Data Sheet (BDS) of the PBDs for Goods; Clauses 12.1 (b) (i), 18.1 and 32.2 of the ITB and BDS of the PBDs for Infrastructure Projects; Clauses 10.2 (a), 15.1 and 31.2 of ITB and BDS of the PBDs for Consulting Services.

2. GPPB Resolution 03-2012 dated 27 January 2012.

3. GPPB Resolution No. 03-2012 dated 27 January 2012, Guidelines on the Use of Bid Securing Declaration.