2016-11-15

NPM No. 101-2016

Requesting Entity: Tagkawayan Water District
Issues Concern: PhilGEPS Posting for Negotiated Procurement (Two Failed
Biddings) under Section 53.1 of the Revised Implementing Rules and Regulations
(IRR) of Republic Act (RA) No. 9184

Whether posting of the Request for Quotations (RFQs) in the PhilGEPS website is
necessary when Negotiated Procurement (Two Failed Biddings) under Section 53.1 of
the IRR of RA 9184 is resorted to.

[T]he 2016 Revised Implementing Rules and Regulations (2016 IRR) of RA 9184 was
published on 29 August 2016 in the Official Gazette and took effect sixty (60) days after
its publication or on 28 October 2016. Hence, in case the subject procurement activity is
to be posted on or after 28 October 2016, the provisions of the 2016 IRR shall take
effect, otherwise the old rules will apply. In this regard, please be guided that the period
for posting of RFQs has been reduced to three (3) calendar days in accordance with the
amendment of Section 54.2 under the 2016 IRR.

2013-12-27
NPM 136-2013
Requesting Entity: Department of Social Welfare and Development (DSWD)
Issues Concern: Negotiated Procurement, Two-Failed Biddings

Whether the DSWD Bids and Awards Committee-I (BAC-I) could evaluate a lone
contractor who responded to the invitation to participate in Negotiated Procurement
under Section 53.1 (Two Failed Biddings) of the revised Implementing Rules and
Regulations (IRR) of Republic Act (RA) No. 9184.

Section 53.1.2 of the IRR of RA 9184 provides that where there has been a failure of
public bidding for the second time, the BAC shall invite and engage in negotiations with
a sufficient number of suppliers, contractors or consultants to ensure effective
negotiations. Unlike in Shopping under Section 52.1(b), which requires at least three (3)
quotations, the rules do not impose the same requirement to Negotiated Procurement
(Two-Failed Biddings) under Section 53.1 of the IRR. The phrase "sufficient number of
suppliers, contractors or consultant" refers to the minimum number of contractors that
the PE must invite for the purpose of engaging in negotiation. Accordingly, if only one
bidder responded to such invitation, the Procuring Entity may proceed with the
Negotiated Procurement as long as it has invited contractors of a number that it deems
sufficient to ensure competition in accordance with Section 53.1.2 of the IRR of RA
9184.
2014-10-21
NPM 076-2014
Requesting Entity: Research Institute for Tropical Medicine (RITM) Department of
Health
Issues Concern: Negotiated Procurement (Two Failed Biddings)

1. Whether the GPPB-TSO is allowed to accept the Motion for Reconsideration of a

bidder who failed to submit its Philippine Contractors Accreditation Board (PCAB)
license within the time prescribed by the rules.

The Government Procurement Policy Board (GPPB) and its Technical Support Office
(TSO) are not in the position to decide for and in behalf, or overturn a decision of a
procuring entity because it has no jurisdiction to rule over actual controversies with
regard to the conduct of bidding.

2. Whether the procedures for the conduct of public bidding is strictly observed in
Negotiated Procurement (Two Failed Biddings)

[T]he procedures for the conduct of public bidding are not strictly observed in this
modality of procurement. An offer or proposal submitted in relation to Negotiated
Procurement (Two-Failed Biddings) under Section 53.1 of the IRR of RA 9184 should
comply with the minimum technical requirements set by the procuring entity and should
not exceed the ABC in order that the offer can be considered by the procuring entity.

2013-12-23
NPM 109-2013
Requesting Entity: Subic Bay Metropolitan Authority (SBMA)
Issues Concern: Negotiated Procurement (Two Failed Biddings)

Whether SBMA may consider the proposals of suppliers who participated in the
Negotiated Procurement (Two Failed Biddings) under Section 53.1 of the revised
Implementing Rules and Regulations (IRR) of Republic Act No. (RA) 9184 for the
procurement of One (1) Lot Services and Materials for the Dry-Docking and Repainting
Works of Two (2) Marine Vessels of SBMA (Project), even if they do not conform to
SBMA’s requirements.

The acceptability of a proposal submitted in response to a request for quotation under

Negotiated Procurement (Two Failed Biddings) under Section 53.1 of the IRR of RA
9184, depends on its compliance with the minimum technical requirements and the
ABC, such that failure to satisfy either one will result in its disqualification.
2013-06-27
NPM 065-2013
Requesting Entity: Metro Kalibo Water District (MKWD)
Issues Concern: Optional Submission of Tax Clearance in Negotiated
Procurement (Two Failed Biddings)

Whether the Bids and Awards Committee (BAC) of MKWD may validly allow the
optional submission of Tax Clearance for the two (2) projects being procured through
Negotiation Procurement under Section 53.1 of the revised Implementing Rules and
Regulations (IRR) of Republic Act (RA) No. 9184 (Two Failed Biddings).

MKWD should require the submission of a Tax Clearance when it resorts to Negotiated
Procurement (Two Failed Biddings) under Section 53.1 of the IRR of RA 9184, and
indicate this requirement in its invitation to negotiate to prospective suppliers,
contractors, and consultants, who must provide said document upon submission of their
proposals or quotations; otherwise disqualification is in order.

Moreover, even if a Tax Clearance is not initially included as one of the eligibility
documents in the invitation to negotiate by the PE for Negotiated Procurement (Two
Failed Biddings), the latter could still require the mandatory submission of the same as it
is necessary in determining the legal and financial capability of the prospective
suppliers, contractors, and consultants to undertake the procurement at hand.