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bid security

Post by endingcumti on Tue Sep 01, 2009 10:36 am

Can the BAC limit the form of Bid Security to be submitted so instead of considering the other forms as provided under R.A. 9184, it can only accept the form of cash from bidders?
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Re: bid security

Post by RDV @ GP3i on Tue Sep 01, 2009 11:50 am

endingcumti wrote:Can the BAC limit the form of Bid Security to be submitted so instead of considering the other forms as provided under R.A. 9184, it can only accept the form of cash from bidders?

YES, you may limit your Bid Security to only some and not all of the forms of Bid Securities allowed. You are even encouraged in the procurement manuals to require bid securities that are easier to call, in case you need to forfeit the bidders bid securities as a penalty.

You just have to indicate in the BDS only the forms that you will accepting. Please take note of the following instructions indicated in the BDS:

"NOTE: The PROCURING ENTITY may choose the acceptable bid security from any of the above-mentioned forms, from which the Bidders may choose."
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Re: bid security

Post by Soysoy on Wed Sep 02, 2009 11:50 am

limiting the kind of bid security runs counter to one of the guiding principles of the Act, that is competitiveness. if a procuring entity is allowed to limit the kind of bid security to be accepted, it stifles the competition in the procurement process. the law prescribes the allowable kinds of bid securities to be posted and to exclude those included in the enumeration of the law is, i think, illegal. with due respect to the manual cited by sir rdv, such 'encouragement' will not hold water if a bidder sues the BAC for not accepting the allowable bid security he had posted.
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Re: bid security

Post by Guest on Tue Jan 05, 2010 9:12 am

ITB No. 7. Bids must be delivered to the address below on or before [insert time and date]. All Bids must be accompanied by a bid security in any of the acceptable forms and in the amount stated in ITB Clause 18.

The option to choose which forms of bid security to be submitted is upon the exclusive right of the bidder and not the procuring entity.

IRR Section 27. For biddings conducted by LGUs, the Bidder may also submit bid securities in the form of cashier’s/manager’s check, bank draft/guarantee, or irrevocable letter of credit from other banks certified by the BSP as authorized to issue such financial statement.

This provision exhibits the options given to the bidder, even though the prior provision is silent if the procuring entity or the bidder has the option to choose.

Again the law provides for an enumeration and limiting such requirement without the benefit of the law is also limiting the principle of competitiveness which we must always take into consideration.

The only function of the BAC in the Bid Security is the time and date when the bids will be submitted together with the bid security.


Last edited by WormaixJr on Tue Jan 05, 2010 2:23 pm; edited 1 time in total

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Re: bid security

Post by fe a. araya on Tue Jan 05, 2010 12:36 pm

Reading Sec. 27 (Bid Security) of the REvised IRR, there was no mention that the BAC can limit the form of BS acceptable. WormaixJr has a point (and so w/ soysoy) that what is expressed in the IRR is only the option to choose which Bid Security Form to submit provided it "shall be in an amount equal to a percentage of the ABC" in accordance with the schedule. Further, All the PBDs for different procurement (goods, infra, consulting) only states that the BDS shall already state the amount of Bid Security which shall be equal to the percentage of the ABC in accordance with the schedule.

However, Sir RDV made mention of the procurement manual (which we do not have yet) stating therein that it (manual) even encouraged PE to require bid securities that are easier to call, etc. and the quoted provision, "NOTE: The PROCURING ENTITY may choose the acceptable bid security from any of the above-mentioned forms, from which the Bidders may choose." , I presumed was taken from the procurement manual mentioned. Can you please enlighten us more, Sir RDV, since we do not have yet that manual to refer to. Thanks and Peace!
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Re: bid security

Post by Guest on Tue Jan 05, 2010 3:57 pm

GPM vol 2,3 and 4

Who determines the form of the Bid Security to be submitted by bidders?
The Procuring Entity must specify in the bidding documents the preferred forms of bid security and the respective amounts thereof. The bidder must choose which among the preferred forms it shall submit.

I think these GPMs are the once sir RDVs pointing out.

The GPMs mentioned is based on the IRR-A of RA 9184...

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Re: bid security

Post by fe a. araya on Tue Jan 05, 2010 4:45 pm

Thanks wormaixJr. Do we have the new GPM already?


Last edited by fe a. araya on Tue Jan 05, 2010 4:48 pm; edited 1 time in total (Reason for editing : Delete some phrase which is already inconsistent)
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Re: bid security

Post by sunriser431 on Tue Jan 05, 2010 4:48 pm

fe a. araya wrote:Thanks wormaixJr. But are you referring to the GPM vol 2, 3 and 4 of the old IRR or the revised IRR? Are these revised procurement manual already downloadable?
Me too on watch mode bounce
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Re: bid security

Post by Guest on Tue Jan 05, 2010 5:04 pm

fe a. araya wrote:Thanks wormaixJr. Do we have the new GPM already?

none at the moment, the GPMs are still in the process of editing and approval. No exact date yet on its release.

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Re: bid security

Post by jscn on Thu Jan 07, 2010 8:51 pm

Your replies are deeply appreciated. Thank you!
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