GOVERNMENT PROCUREMENT POLICY BOARD

TECHNICAL SUPPORT OFFICE (GPPB-TSO)

ATTY. ANTHONY RAYMOND M. VELICARIA

GPPB RECOGNIZED TRAINER
 Document Where When
to file to file to file
1. Request for BAC 3 days from
Reconsideration receipt of notice
from the BAC
2. Protest (verified HOPE 7 days from
position paper, and receipt of notice
payment of protest from the BAC
fee)
3. Petition for RTC 60 days from
Certiorari, Prohibition, receipt of notice
and Mandamus from the HOPE 2
 PROTEST FEES
Resolution 05-2012
ABC RANGE PROTEST FEE
50 million pesos and below 0.75% of the ABC
More than 50 million pesos to 100 PhP 500,000.00
million pesos
More than 100 million pesos to 0.5% of the ABC
500 million pesos
More than 500 million pesos to 1 PhP 2,500,000.00
billion pesos
More than 1 billion pesos to 2 0.25% of the ABC
billion pesos
More than 2 billion pesos to 5 PhP 5,000,000.00
billion pesos
More than 5 billion pesos 0.1% of the ABC

3
 REQUEST FOR
RECONSIDERATION

Decisions of the BAC at any stage of the

procurement process may be questioned by
filing a request for reconsideration within the
three (3) calendar days upon receipt of written
notice or upon verbal notification.
The BAC shall decide on the request for
reconsideration within seven (7) calendar days
from receipt thereof.

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 PROTEST

If request for reconsideration denied, decisions

of the BAC may be protested in writing to the
Head of the Procuring Entity.

Provided:
1. That a prior request for reconsideration
should have been filed by the party concerned
in accordance with the preceding Section, and

2. Request for reconsideration has been

resolved.
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 REQUISITES FOR THE FILING OF A
VALID PROTEST

1. Must be in writing (Verified Position Paper)

2. Addressed to the HOPE

3. Filed within seven (7) calendar days from

receipt by the party concerned of the
resolution of the BAC denying its request for
reconsideration.

4. Accompanied by the payment of a non-

refundable protest fee.

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 VERIFIED POSITION PAPER
The verified position paper shall contain the following
information:
1. The name of bidder;
2. The office address of the bidder;
3. The name of project/contract;
4. The implementing office/agency or procuring
entity;
5. A brief statement of facts;
6. The issue to be resolved;
7. Such other matters and information pertinent and
relevant to the proper resolution of the protest; and
8. Certification against forum shopping

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 VERIFIED POSITION PAPER

An unverified position paper shall be

considered unsigned, produces no legal effect,
and results to the outright dismissal of the
protest.

Failure to comply with the requirements shall

not be curable by mere amendment of the
verified position paper.

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 RESOLUTION OF PROTESTS

The protests shall be resolved strictly on the

basis of records of the BAC. The Head of the
Procuring Entity shall resolve the protest
within seven (7) calendar days from receipt
thereof.

The head of the BAC Secretariat shall furnish

the GPPB a copy of the decision resolving the
protest within seven (7) calendar days from
receipt thereof.

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 NON-INTERRUPTION OF THE
BIDDING PROCESS
 In no case shall any protest taken from any decision
treated in this Rule stay or delay the bidding
process: Provided, however, That protests must
first be resolved before any award is made.
 Court action may be resorted to only after the
protests contemplated in this Rule shall have been
completed.
 The head of the BAC Secretariat of the procuring
entity concerned shall ensure that the GPPB shall
be furnished a copy of the cases filed in accordance
with this Section

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 RESORT TO REGULAR COURTS
 Court Action may be resorted to only after the protest
shall have been resolved with finality. (Doctrine of
Exhaustion of Administrative Remedies)
 Non-compliance with this statutory requirement,
under Section 58 of R.A. No. 9184, constitutes a
ground for the dismissal of the action for lack of
jurisdiction.
Dimson (Manila), Inc. and Phesco, Inc. v Local Water Utilities
Administration, G.R. No. 168656, September 22, 2010.
 Regional Trial Court under Certiorari (Rule 65)

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 RESORT TO REGULAR COURTS

 Protest must comply with Section 55 of R.A.

9184. Where the protest was not verified and
the protest fee was not paid, respondent was
held to have failed to avail of the correct
protest procedure before it filed its petition
for annulment of the award before the RTC.
Land Registration Authority, et. al. vs
Lanting Security and Watchman Agency, G.R.
No. 181735

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 NON-POLICY MATTER OPINIONS
NPM 084-2012
REQUEST TO HOLD THE AWARDING OF CONTRACT IN
ABEYANCE UNTIL THE BIDDER HAS SECURED A COPY OF
THE MINUTES OF THE POST-QUALIFICATION PROCEEDINGS
[A] protest filed with the HOPE preceded by a request for
reconsideration filed with the BAC are the proper steps to take in
order to prevent the awarding of the contract until such time that
the protest has been resolved. Hence, a mere request to hold the
proceedings in abeyance which is filed after bid opening will not
suffice. Otherwise, the bidding process would be unnecessarily
hampered if each bidder may simply request to hold the proceedings
in abeyance without following the correct process within the proper
periods laid out by the rules

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 NON-POLICY MATTER OPINIONS

NPM 145-2012

PAYMENT OF NON-REFUNDABLE FEE A CONDITION

SINE QUA NON FOR FILING A WRITTEN PROTEST
[B]eing one of the indispensable requirements for filing a
protest, the non-payment of the protest fee does not toll the
prescriptive period for filing a protest and it becomes a
justifiable basis for the HOPE not to entertain a protest.
Simply stated, a bidder whose request for reconsideration was
denied must pay the required protest fee to avail of the
protest mechanism under the procurement law and its
associated rules.

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 NON-POLICY MATTER OPINIONS
NPM 078-2007

EFFECT OF DELAY BY THE BAC IN RESOLVING THE

REQUEST FOR RECONSIDERATION BY A DISQUALIFIED
BIDDER
Failure to decide on the protest within the prescribed seven
(7) calendar day period, does not result in the automatic
qualification of an ineligible bidder nor in the curing of any
defect found in its bid. The post-disqualified bidder cannot be
awarded the contract by mere failure of the BAC/HOPE to
resolve or rule on the MR or protest, without prejudice to
whatever sanctions that may be imposed upon the
BAC/HOPE if there is delay without justifiable cause.

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 NON-POLICY MATTER OPINIONS
NPM 007-2013
APPLICABILITY OF ‘NO CONTACT RULE’ TO
DISQUALIFIED BIDDERS
Bidders who waived their right to utilize the protest
mechanism or those whose request for reconsideration and/or
protest were subsequently denied are not covered by the
prohibition under Section 32.1 of the IRR. Since their bids are
no longer part of the evaluation, the “no contact rule” need
not be applied to them. Hence, disqualified bidders may
convey to the BAC any valid, reasonable and lawful
information or observation they have pertaining to the bids
submitted by qualified bidders.

Capacity Development Division 16

GOVERNMENT PROCUREMENT POLICY BOARD
TECHNICAL SUPPORT OFFICE (GPPB-TSO)

ATTY. A. RAYMOND M. VELICARIA

GPPB TSO RECOGNIZED TRAINER
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CONSTITUTIONAL AND LEGAL
BASIS FOR REGULATION OF
GOVERNMENT PROCUREMENT

18
 CONSTITUTIONAL BASIS

 Art 11, Sec. 1. “Public office is a public trust.

Public officers and employees must, at all times,
be accountable to the people, serve them with
utmost responsibility, integrity, loyalty, and
efficiency x x x.”
 Art 2, Sec 27. “The State shall maintain honesty
and integrity in the public service and take
positive and effective measures against graft and
corruption.”
 Art 2, Sec. 28. “Subject to reasonable conditions
prescribed by law, the State adopts and
implements a policy of full public disclosure of all
its transactions involving public interest.”
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CONSTITUTIONAL AND LEGAL BASIS
 Art 3, Sec. 7. “The right of the people to
information on matters of public concern shall be
recognized. Access to official records, and to
documents, and papers pertaining to official acts,
transactions, or decisions x x x shall be afforded
the citizen, subject to such limitations as may be
provided by law.”
 Sec 2 of RA 9184. “It is the declared policy of the
State to promote ideals of good governance in all
its branches, departments, agencies, subdivisions,
and instrumentalities, including government-
owned and/or controlled corporations, and local
government units”
 Sec 10 of RA 9184. “All procurement shall be
done through Competitive bidding x x x.”
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CONSTITUTIONAL AND LEGAL BASIS

Art 3 of the Civil Code- “Ignorance of the law

excuses no one from compliance therewith.”

US vs Sornito, 4 Phil 357- A person is

criminally responsible or liable for the
consequences of his/her wrongful act.

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 Good governance- is epitomized by predictable,
open, and enlightened policy-making, a
bureaucracy imbued with professional ethos
acting in furtherance of the public good, the rule
of law, transparent process, and a strong civil
society participating in public affairs. (World Bank
in Governance: The World Bank Experience as cited in Ursal,
Sofronio, Government Procurement Toolkit: RA 9184, annotated,
Revised Ed., QC: Good Governance Books (2013)

 RA 9184 seeks to foster “good governance” by

implementing transparency in government
transactions, specifically making mandatory the
conduct of a public bidding in all procurements of
any government agency, branch, or
instrumentality. (Separate concurring opinion of J. Reyes,
Capalla vs COMELEC, GR. No. 201112, 13 June 2012)

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 3 FOLD LIABILITY

 Criminal Liability

 Civil Liability

 Administrative Liability

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 LIABILITY OF A
PUBLIC OFFICER

24
 CRIMINAL LIABILITY

Imprisonment for not less than six (6) years

and one (1) day and not more than fifteen (15)
years.

Temporary disqualification from office, or

permanent disqualification from office for
conspiring with bidders under Sec. 65 (b) of
RA 9184 and Sec. 65.2 of IRR

Prosecution under RA 3019 or Anti-Graft and

Corrupt Practices Act, RPC, and other penal
laws
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 CIVIL LIABILITY

In case of conviction under RA 9184 or RA

3019- restitution, restoration or compensation
for the damage done

Forfeiture in favor of the government of any

unwarranted benefit derived from the act/s in
question

Capacity Development Division 26

 ADMINISTRATIVE LIABILITY

Preventive Suspension if there is prima facie

evidence that he/she is liable for Dishonesty
or any administrative offense as defined
under existing laws

Penalty of Suspension, Fine, or Dismissal

from the Service under existing laws

Capacity Development Division 27

 OFFENSES COMMITTED BY
PUBLIC OFFICERS
1. Opening any sealed Bid or document
required to be sealed submitted, or divulging
their contents prior to the date and time of
opening of Bids or other documents.

2. Delaying, without justifiable cause, the

screening for eligibility, opening of bids,
evaluation and post evaluation of bids, and
awarding of contracts beyond the prescribed
periods of action.

Capacity Development Division 28

OFFENSES COMMITTED BY PUBLIC
OFFICERS
3. Unduly influencing or exerting undue pressure
on any member of the BAC or officer or
employee of the procuring entity to take a
particular action w/c tends to favor a particular
bidder.

4. Splitting of contracts.

5. Abuse by the HOPE of his power to reject any

and all bids with manifest preference to any
bidder who is closely related to him in
accordance w/ the provision on disclosure of
relations.
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 ADMIN OFFENSES COMMITTED BY
PUBLIC OFFICERS

1. Dishonesty

2. Other administrative offense under existing

laws

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 LIABILITY OF A
PRIVATE INDIVIDUAL

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 CRIMINAL LIABILITY
 Imprisonment for not less than six (6) years and
one (1) day and not more than fifteen (15) years.
(if an entity- it shall be imposed against its
directors, officers, and/or employees who
actually committed the prohibited act)
 Permanent disqualification from transacting
business with the government
 Prosecution under RA 3019 or Anti-Graft and
Corrupt Practices Act, RPC, and other penal
laws for those in collusion w/ public officers
officers or employees
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 CIVIL LIABILITY

In case of conviction under RA 9184 or RA

3019- restitution, restoration or compensation
for the damage done

In case of breach of contract, default or delay

- liquidated damages of 0.1% of the cost of
unperformed portion for every day of delay
(rescission of contract if liquidated damages reaches a cumulative
amount of 10% of the amount of contract)

Capacity Development Division 33

 ADMINISTRATIVE LIABILITY

Disqualification
Suspension, or Blacklisting for 1 yr for 1st
offense or 2 yrs for 2nd offense
Forfeiture of Bid Security, or Performance
Security
Annulment of Award, or Termination of
Contract
Fine and Blacklisting for violation of Bid
Bid Securing Declaration
Capacity Development Division 34
OFFENSES COMMITTED BY PRIVATE
INDIVIDUALS
Sec 65(b) of RA 9184 and Sec 65.2 of IRR

1. When two or more bidders agree and submit

different bids when they knew that one of them
was so much higher than the other that the
former’ bid could not be accepted and the
contract will surely be awarded to the pre-
arranged lowest bid.
2. When a bidder maliciously submits different bids
through two or more persons in which he has an
interest, to create the appearance of competition
that does not in fact exist so as to be adjudged as
the winning bidder.
Capacity Development Division 35
OFFENSES COMMITTED BY PRIVATE
INDIVIDUALS
3. When two or more bidders enter into an
agreement which call upon one to refrain from
bidding, or withdraw bid/s already submitted, to
secure an undue advantage to any one of them.

4. When a bidder employs a scheme which tend to

restrain the natural rivalry of the bidders, or
stifle or suppress competition to produce a result
disadvantageous to the public.

Capacity Development Division 36

OFFENSES COMMITTED BY PRIVATE
INDIVIDUALS
Sec 65(c) of RA 9184 and Sec 65.3 of IRR

5. Submitting eligibility requirements that contain

false information or falsified documents to
influence the outcome of the eligibility screening
process, or conceal an information which will
lead to a declaration of ineligibility from
participating in public bidding
6. Submitting bidding documents that contain
false information or falsified documents, or
conceal an information to influence the outcome
of the public bidding.
Capacity Development Division 37
OFFENSES COMMITTED BY PRIVATE
INDIVIDUALS
7. Participating in a public bidding using the name
of another, or allowing another to use one’s
name to participate in a public bidding.

8. Withdrawing a bid, after it shall have qualified

as the LCB/HRB, or refusing an award without
just cause, or delaying the submission of or
submitting beyond the prescribed time the
requirements such as but not limited to
performance security to force the Procuring
Entity to award the contract to another bidder.

Capacity Development Division 38

 ADMIN OFFENSES COMMITTED BY
PRIVATE INDIVIDUALS
1. Offenses under Sec. 65 (c) of RA 9184 or Sec. 65.3
of the IRR
2. Termination of contract due to default of bidder
3. Refusal to clarify in writing its bid during post
qualification w/in 7 days from receipt of request
for clarification
4. Any documented attempt by a bidder to unduly
influence the outcome of bidding in his favor
5. All other acts that tend to defeat the purpose of
competitive bidding, such as habitually
withdrawing from bidding, or submitting late or
patently insufficient bid for at least 3x w/in a year
Capacity Development Division 39
GOVERNMENT PROCUREMENT POLICY BOARD
TECHNICAL SUPPORT OFFICE (GPPB-TSO)

ATTY. A. RAYMOND M. VELICARIA

GPPB - TSO RECOGNIZED TRAINER
Capacity Development Division 40
 BLACKLISTED PERSONS
• A JV w/c is blacklisted or has a blacklisted member/
partner as well as person/entity who is a member of a
blacklisted JV are also not allowed to participate in
any govt procurement during the period of
disqualification
• In corporations, a single stockholder, together w/ his
relatives up to the 3rd civil degree and their
assignees, holding at least 20% of the shares therein,
its chairman and president, shall be blacklisted after
they have been determined to hold the same
controlling interest in a previously blacklisted
corporation or in 2 corporations w/c have been
blacklisted; the corporations of w/c they are part
shall also be blacklisted
Capacity Development Division 41
 WHO MAY INITIATE?

• Any bidder/prospective bidder, or duly authorized

observer by filing a written complaint with the BAC.

• The BAC motu proprio upon prima facie

determination that the bidder/prospective bidder has
committed any prohibited act which constitute a
ground for blacklisting

• The End-User Unit concerned, or Implementing Unit

of the PE

Capacity Development Division 42

COMPETITIVE BIDDING
STAGE

Capacity Development Division 43

 GROUNDS
COMPETITIVE BIDDING STAGE

Offenses under Sec 69 (a) of RA 9184 or Sec.

69.1 of the IRR, except Termination of
contract due to default of the bidder

Capacity Development Division 44

 PROCEDURE
COMPETITIVE BIDDING STAGE
1. Written complaint w/ the BAC. Reasonable fee may
be required.

2. BAC to verify existence of the grounds

3. Notify the bidder in writing

3.1) Complaint has been filed
3.2) Show cause
3.3) Hearing to be conducted upon request
3.4) Consequence of being blacklisted

4. Bidder to submit a written Answer (no Motion for

extension of time allowed) w/in 5 cd from receipt of
notice Capacity Development Division 45
 PROCEDURE
COMPETITIVE BIDDING STAGE
5. BAC to either:
5.1) issue the resolution recommending suspension in
any bidding process and forfeiture of bid security- if
no Answer is filed
5.2) determine the merits of case based on the docs
submitted, and issue the resolution- if an Answer is
filed and no hearing is requested
5.3) conduct the non-litigious hearing (may invite
observers) to be terminated w/in 5 cd, and issue the
resolution- if an Answer is filed and hearing is
requested

6. HOPE to render a Decision w/in 15 cd 15 cd

from receipt of resolution.
Capacity Development Division 46
 PROCEDURE
COMPETITIVE BIDDING STAGE
6.1) to state the facts, evid, and law on w/c it is
based, and date of effectivity of penalty
6.2) to take effect during period of MR and Protest
unless reversed
6.3) to become final and executory after 7 cd from
receipt of decision and no MR or Protest is filed.
HOPE to issue the blacklisting order, submit to
GPPB w/in 7 cd from issuance, and forfeit the bid
security

7. Bidder to file the MR w/in 3cd from receipt of

Decision on any of the following grounds
7.1) not in conformity w/ facts or evid presented
7.2) newly discovered evid
Capacity Development Division 47
 PROCEDURE
COMPETITIVE BIDDING STAGE

8. HOPE to issue the Order/Resolution w/in 7 cd from

receipt of MR.
8.1) issue the blacklisting order
8.2) submit to GPPB w/in 7 cd from issuance of
blacklisting order
8.3) forfeit the bid security

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 STATUS OF BLACKLISTED PERSON

Before issuance of Blacklisting Order- person may

participate in the procurement of any government
project, except in the agency where he is suspended.

Before issuance of NOA- person shall not be qualified

for award and such project/contract be awarded to
another bidder.

After issuance of NOA- project/contract shall not be

prejudiced provided that the offense is not connected
with the awarded project/contract.

Capacity Development Division 49

CONTRACT IMPLEMENTATION
STAGE

Capacity Development Division 50

 GROUNDS
CONTRACT IMPLEMENTATION STAGE
1. Failure of the contractor, due solely to his fault or
negligence, to mobilize and start work or
performance within the specified period in the NTP;

2. Failure by the contractor to fully comply w/ its

contractual obligations without valid cause, or
comply w/ any written lawful instruction of the PE
pursuant to the implementation of the Contract;

3. Assignment and subcontracting of any part of the

contract, or substitution of key personnel named in
the proposal without prior written approval by the
PE;
Capacity Development Division 51
 GROUNDS
CONTRACT IMPLEMENTATION STAGE
4. Unsatisfactory in the delivery of Goods by the
manufacturer, supplier or distributor arising
from his fault or negligence, and/or inferior
quality of goods, as provided in the contract;

5. Poor performance by the consultant of his

services arising from his fault or negligence;

6. Poor performance by the contractor, or

unsatisfactory quality and/or progress of work
arising from his fault or negligence as reflected
in the Constructor's Performance Evaluation
System (CPES) Rating Sheet or any Performance
Monitoring Sytem;
Capacity Development Division 52
 GROUNDS
CONTRACT IMPLEMENTATION STAGE

7. Willful or deliberate abandonment or non-

performance of the project or contract by the
contractor resulting to substantial breach
thereof without lawful and/or just cause;

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 PROCEDURE
CONTRACT IMPLEMENTATION STAGE

1. Written complaint with the End-User Unit

concerned, or Implementing Unit of the PE

2. End-User or Implementing Unit to verify existence

of the grounds w/in 7 cd from receipt of complaint,
and submit to the HOPE a Verified Report with its
recommendation/s and relevant evidence

3. HOPE may create a Contract Termination Review

Committee for this purpose.

Capacity Development Division 54

 PROCEDURE
CONTRACT IMPLEMENTATION STAGE
3. HOPE to issue to the Contract Awardee a written Notice
to Terminate the contract
3.1) grounds for blacklisting
3.2) acts that constitute the grounds for blacklisting
3.3) show cause
3.4) verified report of End-User Unit

4. Contract Awardee to submit the verified position paper

w/in 7 cd from receipt of notice.

5. HOPE to render a decision by issuing the Order to

Terminate the contract
5.1) after 7 cd if no verified position paper is filed or
5.2) w/in 10 cd from receipt of position paper based on the
ground/s in the Notice to Terminate contract
Capacity Development Division 55
 PROCEDURE
CONTRACT IMPLEMENTATION STAGE

6. HOPE to subsequently issue the Blacklisting Order,

submit to GPPB w/in 7 cd from issuance of such
Order, and forfeit the performance security
- PE may enter into a negotiated procurement
particularly Take-Over of Contracts

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 DELISTING

Removal of a person from the GPPB

Consolidated Blacklisting Report.

Automatically delisted after the period for the

penalty shall have elapsed

May be delisted only after the issuance of

Delisting Order by the blacklisting agency if
such agency requests the GPPB to maintain
the person in the GPPB Consolidated
Blacklisting Report

Capacity Development Division 57

NON-POLICY MATTER OPINIONS

NPM 006-2011

HABITUAL WITHDRAWAL OF BIDS

Section 26.2 of the Implementing Rules and
Regulations (IRR) of Republic Act (RA) 9184
provides that bidders may withdraw their bids prior
to the deadline for the receipt of bids by submitting
a letter expressing their intention to no longer
participate in the bidding. The act of withdrawal
consists of the acts of submitting a bid and
retracting the same. It becomes habitual when
repeatedly done three times within a year.
.
Capacity Development Division 58
 THANK YOU!!

Contact us:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44

Capacity Development Division 59