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BID SECURITY

Post by mika07 on Wed Sep 14, 2011 12:27 am

I want to clarify something.
We have one transaction which was subjected to bidding, the procurement of advocacy materials which amounted to P90,000.00. There was a lone bidder. As per minutes of the BAC meeting, the bidder posted bid security in the amount of P1,800.00. However, as per official receipt and the amount of the bidders bond deposited its only P1,700.00. Despite this, the BAC awarded this to the “winning bidder”. The voucher was returned by the accounting office noting the deficiency. The BAC then issued a resolution stating that it was an “excusable negligence” and the irregularity was not with the BAC but with the BAC secretariat and recommended the award to the lone bidder.
The question is, Is there a violation of the IRR? Does this make the bidding/procurement process irregular? There was no information what happened to the P100.00 which was not receipted. It was not returned to the bidder nor deposited to the account of the agency.

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Re: BID SECURITY

Post by engrjhez® on Wed Sep 14, 2011 1:03 am

mika07 wrote:I want to clarify something.
We have one transaction which was subjected to bidding, the procurement of advocacy materials which amounted to P90,000.00. There was a lone bidder. As per minutes of the BAC meeting, the bidder posted bid security in the amount of P1,800.00. However, as per official receipt and the amount of the bidders bond deposited its only P1,700.00. Despite this, the BAC awarded this to the “winning bidder”. The voucher was returned by the accounting office noting the deficiency. The BAC then issued a resolution stating that it was an “excusable negligence” and the irregularity was not with the BAC but with the BAC secretariat and recommended the award to the lone bidder.
The question is, Is there a violation of the IRR? Does this make the bidding/procurement process irregular? There was no information what happened to the P100.00 which was not receipted. It was not returned to the bidder nor deposited to the account of the agency.

First, you have to understand that the "bid security amount" was fixed under the revised IRR (2% of ABC) and should be taken as the minimum amount required. If the Bid security amount is below than that prescribed, then the bidder should have been declared ineligible and consequently will be marked as FAILED, and declare failure of bidding.

Second, the statement speaking of "excusable negligence" is totally unacceptable. It is the BAC who has the sole authority to open the bids - not the BAC Secretariat. It is the BAC who shall rate the 1st envelope as "passed" or "failed" - not the BAC Secretariat. For how come the BAC made such neglect on the part that they have no part. And it would be a funny thing to think that the BAC Secretariat may have drafted the resolution citing their alleged negligence. (poor BAC Secretariat, pity the BAC).

Third, there was a clear violation of the IRR and the BAC have failed to follow the prescribed bidding procedures. At this point, it may be too late to exercise the "reservation clause" as power of the HOPE to annul the bidding process (because award and contract are already executed). The best that can be done is to terminate the contract (convenience).

Lastly, forget about the P100.00 deficit because even if it was attempted to be added, it is still not in order. Even if the bid security falls 1-centavo below the required, it cannot be considered or rounded off for the purposes of complying with the required bid security.

You should be very careful with the technicalities of R.A 9184. Neglect of duty is a serious offense.
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