To Provide the Exemption from Posting of Performance Security for Goods Procured Through Shopping Under Section 52 (a) of the IRR-A of RA 9184

January 20, 2006

GPPB RESOLUTION NO. 05-06

TO PROVIDE THE EXEMPTION FROM POSTING OF PERFORMANCE SECURITY FOR GOODS PROCURED THROUGH SHOPPING UNDER SECTION 52 (a) OF THE IRR-A OF RA 9184

WHEREAS, Republic Act No. 9184 (R.A. 9184), otherwise known as "Government Procurement Reform Act" and its Implementing Rules and Regulations Part A (IRR-A) took effect on January 26, 2003 and October 8, 2003, respectively; EHaDIC

WHEREAS, pursuant to Section 39 of R.A. 9184, the winning bidder is required to post a performance security as a measure of guarantee for the faithful performance of and compliance with obligations under the contract;

WHEREAS, the posting of a performance security guarantees the faithful performance of the supplier to indemnify or compensate the Government for any damage or loss due to non-completion of projects or non-performance of contracts;

WHEREAS, the alternative method of Shopping under Section 52 (a) of the IRR-A may be resorted to in the procurement of goods in cases where there is an unforeseen contingency requiring immediate purchase;

WHEREAS, to require the supplier, specifically selected by the procuring entity from whom the goods shall be directly procured, to still post a performance security in cases where shopping under Section 52 (a) of the IRR-A of RA 9184 is resorted to, will result to an absurdity and render the requirement hardly practicable and reasonable in view of the immediate compliance of the supplier's obligation to deliver or perform, such that, there is no more delivery or performance to be guaranteed or secured, thereby rendering nugatory the purpose for which the performance security is to be posted.

NOW, THEREFORE, premises considered, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to adopt, as WE hereby adopt the rule as to the exemption of suppliers from further posting a performance security in cases where the procurement is done through Shopping under Section 52 (a) of the IRR-A of RA 9184 provided however, that the goods procured shall be delivered upon purchase.

This resolution shall take effect immediately.

APPROVED this 20th of January 2006 at Pasig City, Philippines. cACHS

 

(SGD.) ROMULO L. NERI (SGD.)	AUGUSTO B. SANTOS
Secretary	Secretary
Department of Budget and	National Economic and
Management	Development Authority
(SGD.)
National Economic and	Department of National
Development Authority	Defense
(SGD.)	(SGD.)
Department of Education	Department of Health
(SGD.)	(SGD.)
Department of the Interior	Department of Energy
and Local Government
(SGD.)	(SGD.)
Department of Public Works and Highways	Department of Finance
(SGD.)	(SGD.)
Department of Trade and Industry	Department of Science and Technology
(SGD.)	(SGD.)
Department of Transportation	Private Sector Representative
and Communications
Attested by:
(SGD.) ELMER H. DORADO
OIC Board Secretary, GPPB
Officer-in-Charge, GPPB-TSO