Refusal to accept an award

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Refusal to accept an award

Post by dabomeister on Fri Oct 01, 2010 4:44 pm

A bidder for goods (medical supplies) rescinded a contract on the grounds that he cannot deliver the items. what possible sanction/s does the bidder will face? will the next lowest bidder be automatically awarded the contract?
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Re: Refusal to accept an award

Post by engrjhez® on Fri Oct 01, 2010 9:01 pm

You can forfeit their Performance Security and then initiate blacklisting.

You will have to post qualify the next LCB first before you can award the contract.

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Re: Refusal to accept an award

Post by RDV @ GP3i on Sat Oct 02, 2010 12:39 am

dabomeister wrote:A bidder for goods (medical supplies) rescinded a contract on the grounds that he cannot deliver the items. what possible sanction/s does the bidder will face? will the next lowest bidder be automatically awarded the contract?

Your topic title is "Refusal to accept award", but you mentioned about a “contract” being rescinded by the bidder for goods.

My reply then would be on the assumption that the winning bidder was awarded the contract. If the supplier is unable to deliver the items in the contract, said supplier cannot just unilaterally terminate the contract.

In the Guidelines on Termination of Contracts, it is the procuring entity that shall terminate the contract for default (or for failure of the supplier to perform its obligation under the contract). The sanction that could be imposed is the forfeiture of the supplier’s Performance Security.

After the contract has been terminated, the BAC may recommend Negotiated Procurement using as basis Sec. 53.3 or Take-Over of Contracts. Under the said section, in ”take-over of contracts, which have been rescinded or terminated for causes provided for in the contract and existing laws, where immediate action is necessary to prevent damage to or loss of life or property…”, the original contract may be negotiated starting with the second lowest calculated bidder for the project at the bidder’s original bid price.
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