Bid Securities

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Bid Securities

Post by Mikel on Thu May 09, 2013 11:10 am

The Bid Documents of a Procuring Entity were not updated such that the Bid Securing Declaration was not included in the list of acceptable forms of bid security. However, some of the bidders submitted BSD as their bid securities, including the winning bidder who was eventually awarded the contract. Is the submission of a BSD ground for post-disqualification for being non-responsive? Or is the amendment (GPPB Resolution No. 03-012) already deemed incorporated in the bid docs pursuant to Sec. 74.2 of the IRR?

Also, can a Procuring Entity limit the acceptable forms of bid security (i.e. cash and surety bond only) which they can accept in a public bidding? Thank you very much.

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Re: Bid Securities

Post by engrjhez® on Thu May 09, 2013 11:44 am

Mikel wrote:The Bid Documents of a Procuring Entity were not updated such that the Bid Securing Declaration was not included in the list of acceptable forms of bid security. However, some of the bidders submitted BSD as their bid securities, including the winning bidder who was eventually awarded the contract. Is the submission of a BSD ground for post-disqualification for being non-responsive? Or is the amendment (GPPB Resolution No. 03-012) already deemed incorporated in the bid docs pursuant to Sec. 74.2 of the IRR?

Also, can a Procuring Entity limit the acceptable forms of bid security (i.e. cash and surety bond only) which they can accept in a public bidding? Thank you very much.

Reading from GPPB Resolution No. 03-2012:



x x x

NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to confirm, adopt and approve, as WE hereby confirm, adopt and approve the following:

1. Amendment of Section 27.5 of the IRR of RA 9184 to read:

In lieu of a bid security mentioned in Section 27.2 above, the bidder may submit a Bid Securing Declaration that is an undertaking which states, among others, that the bidder shall enter into contract with the procuring entity and furnish the required performance security within ten (10) calendar days, or less, as indicated in the Bidding Documents, from receipt of the Notice of Award, and committing to pay the corresponding fine and be suspended for a period of time from being qualified to participate in any government procurement activity in the event it violates any of the conditions stated therein as required in the
guidelines issued by the GPPB.

2. Insertion of a new Section 27.6 reflecting the provisions of the original Section 27.5 of the IRR of RA 9184, to wit:

27.6. In no case shall bid security or Bid Securing Declaration be returned later than the expiration of the bid validity period indicated in the Bidding Documents, unless it has been extended in accordance with Section 28.2 of the IRR.

3. GUIDELINES FOR THE USE OF BID SECURING DECLARATION AS AN ADDITIONAL FORM OF BID SECURITY, attached hereto as Annex “A”, and made an integral part hereof.

x x x

(emphasis supplied)

It is well settled that between the IRR and PBDs the former prevails. Thus the submission of Bid Securing Declaration, even if not included in the Bidding Documents, may be validly allowed as long as it is properly accomplished in the prescribed form by the GPPB. Its submission cannot be a ground for post qualiffication because the BAC would be in estoppel as they should have disqualified the bidder outright if it was not acceptable.

The Revised IRR's intention is to open the options for bidders. The intention of the amendment is to provide additional option. Procuring entities are precluded from restricting options for bid security. Smile
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