Bidder's Bond

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Bidder's Bond

Post by mbdr on Mon Mar 09, 2009 11:54 am

Good day. Please share with me your ideas on this matter.

Just recently, we had a bidding for chlorine. Two bidders pariticipated in the bidding but the quotation of one bidder exceeded the ABC and its specification for the item is non-complying to that of the end-user. The other bidder complies the requirement of the end-user and its bid is within the ABC, thus PO was served thru FAX on February 27, 2009 . The delivery term specified in the said PO is 15 working days. However, the said bidder wrote to BAC on March 3, 2009 waiving the delivery of the subject item for reason that their stock for the same is alredy sold out.

Please be informed that in ITB, it is specified that the price offer must be valid for 70 caledar days. My question is..... if the BAC will approve its waiver, can the BAC forfiet its bidder's bond?

Hope to har from you soo. thanks and godbless us all!

mbdr
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Re: Bidder's Bond

Post by RDV @ GP3i on Mon Mar 09, 2009 2:39 pm

If you will approve the request of the "winning bidder" for a waiver on the delivery schedule, why would you forfeit his/her bid security/bid bond? Bid forfeiture is an administrative penalty to a bidder. If you were satisfied with his justification and you finally waive or move the delivery period, there is no reason for the penalty.

If you will not consider his request, then you can disqualify him and forfeit his bid security if it is still valid considering that you required that his bid security be valid for 70 calendar days.
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Re: Bidder's Bond

Post by mbdr on Mon Mar 09, 2009 4:57 pm

Thank you so much for your answer. And More Power to all!

mbdr
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Bidder's Bond

Post by venom.0420 on Mon Mar 09, 2009 10:52 pm

Hi MBDR,

According to your post, you have already issued a Purchase Order in this item, which means you also have issued a Notice of Award to the said bidder. If this is the case, then it means that the bidder most likely have also posted a Performance Bond in this item. Hence, it is the Performance Bond and not the Bidder's Bond that you should forfeit, only if you refuse the request of the bidder to waive the delivery of the item. However, if in case the bidder did not post any performance bond, then it means the PO should be cancelled 'coz the bidder already failed to meet it's obligation after the award of the contract, hence, allowing you to rightfully forfeit the bidder's bond.

Please take note that there is an instruction to the bidder in the Notice of Award to post the necessary Performance Bond upon receipt of the notice. As a matter of security, the procuring entity, should not issue any PO until such time they are furnish a copy of the Performance Bond of the winning bidder.

Further, this practice by some contractors is a valid ground for any procuring entity to suspend or blacklist them. Your BAC should take the necessary steps not only to refuse their request but to at least reprimand such contractor in order for this not to happen again. Otherwise, this will become a precedent and as such, may recur in the future.

My take in this issue. Very Happy
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Re: Bidder's Bond

Post by mbdr on Tue Mar 10, 2009 9:19 am

Thank you venom and RDV. God bless

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Re: Bidder's Bond

Post by RDV @ GP3i on Thu Mar 12, 2009 2:22 pm

mbdr wrote:Thank you venom and RDV. God bless

My pleasure. Very Happy
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