BRIEFING ON NEA

PROCUREMENT
GUIDELINES
HOUSE RULES
OUTLINE
1. General Principles of Procurement including the Relevant
Provision in the Code of Governance for Electric Cooperative

2. Memorandum No. 2017-019 NEA Revised Procurement

Guidelines and Simplified Bidding Procedures

3. Republic Act 9184 or the Government Procurement Reform

Act
IMPOSITION OF PENALTIES
EC Officers ( Board, General Manager), BAC, TWG and Secretariat

Appropriate EC officers, BAC, TWG and Secretariat who commit any of

the following acts shall be imposed sanctions in accordance to the NEA
Adcom Rules:

a) Delaying, without justifiable cause, the screening for eligibility,

opening of bids, evaluation and post evaluation of bids, and awarding
of contracts beyond the prescribed periods of action provided for in
this guidelines.
IMPOSITION OF PENALTIES

b) Unduly influencing or exerting undue pressure on any member of the

BAC or any officer or employee od the procuring entity to take a
particular action which favors, or tends to favor a particular bidder.
c) Splitting of contracts which exceed procedural purchase limits to
avoid competitive bidding or to circumvent the limits of approving or
procurement authority.
d) Abuse by the Head of the Head of the Procuring Entity of his power to
reject any and all bids as mentioned under Section V-F of the
guidelines.
General Principles of
Procurement
GOVERNING PRINCIPLES OF PROCUREMENT
• Competitiveness by extending equal opportunity to enable private
contracting parties who are eligible and qualified to participate in
competitive bidding.

• Accountability of BAC and EC officials who are directly or indirectly

involved in the procurement process where they shall be held liable for
their actions relative thereto.

• Transparency in the procurement process and in the implementation of

procurement contracts.

• Streamlined and simplified procurement process that will uniformly

be applied to both stock and non-stock ECs.
Code of Governance for
Electric Cooperatives
NEA MEMORANDUM 2020-001

Adoption of Code of Governance for Electric Cooperatives

The Code of Governance defines accountability, responsibility,

and transparency in the EC. It provided the delineation of roles and
responsibilities including the relationship between the board members;
the board and management; the EC and member consumer-owners
(MCOs) and other stakeholders. It includes the obligation of the EC to
protect the rights and interests of the MCOs and provide sustainable
programs and projects for the development of the community as part of
its social responsibility.
ARTICLE VI: DUTIES AND OBLIGATIONS OF BOARD OF DIRECTORS
AND BOARD OFFICERS

Sec. 5. Prohibitions. – As Directors and Officers of the EC they shall always act in
the interest of the MCOs and cooperative. Thus, they:

(a) Should not seek special favors, privileges, benefits or advantages of any sort
for themselves or for other persons having only their personal motives to
promote;
(b) Should not directly or indirectly involve themselves in functions that
inherently belong to Management such as, for example, material
purchases and procurement;
(c) Should not intrude in the day-to-day management and operations of the coop;
(d) Should not hold regular office hours in the coop; and
(e) Should not undertake travels unless officially authorized by the Board and in
accordance with existing rules and regulations of NEA.
ARTICLE VII: MANAGEMENT

Sec. 1. Role of Management.

The Management of the EC shall perform decision-making functions for

the day-to-day affairs of the EC.

Management is responsible to the Board for implementing the Road Map

for the ECs success.
DEFINITION OF TERMS
• Approved Budget of The Contract (ABC) - refers to the budget for
the contract duly approved by the EC Board as provided for in the
EC's approved Cash Operating Budget, Annual Procurement Plan, E-
ICPM or ERC approved CAPEX.

• APP - Annual Procurement Plan

• BAC - Bids and Awards Committee

• Bidding Documents - refers to documents issued by the EC (duly

approved by the Board) as basis for bids, furnishing all information
necessary for a prospective bidder to prepare a bid.
DEFINITION OF TERMS
• Bid - refers to a signed offer or proposal submitted by a bidder in
response to the Bidding Documents.

• CAPEX - refers to the ERC approved capital expenditures of the EC

to be recovered through rate increase.

• COB (Cash Operating Budget) - refers to the EC's budget for a

particular year duly approved by NEA

• EC- Electric Cooperative E-ICPM - refers to the NEA approved

Enhanced - Integrated Computerized Planning Model of the EC.
DEFINITION OF TERMS

• HOPE - Head of Procuring Entity- refers to the EC Board or its duly authorized
official. (If the Board authorizes the General Manager, it must be through a Board
Resolution).

• Lowest Calculated Bid - refers to the Bid which was determined to be the Lowest
Calculated Bid after evaluation which shall be subjected to post qualification to
determine its responsiveness to the requirements of the project/s being bided.

• Lowest Calculated Responsive Bid - refers to the bid which was determined to be
the Lowest Calculated Bid after evaluation, passed all the criteria for post
qualification and was determined to be responsive to the requirements of the
projects being bided.

• Procuring Entity - refers to the Electric Cooperative

 Memorandum No. 2017-019 or the
NEA Revised Procurement Guidelines
and Simplified Bidding Procedures
MEMORANDUM NO. 2017-019

To ensure transparency, the National Electrification Administration (NEA)

shall monitor all biddings conducted by the Electric Cooperatives through
a Monitoring Report submitted electronically to NEA website or hard copy
submitted to the NEA ECAD Office. A designed format for this purpose is
attached as part of these guidelines. The NEA website is www.nea.gov.
ph.
EC PROCUREMENT PLANNING
1. All procurement by the EC shall be based on the approved Cash
Operating Budget Supplemental Budget, E-ICPM, and CAPEX which
were consolidated into an Annual Procurement Plan (APP).

2. The Annual Procurement Plan shall also include provisions for

foreseeable emergencies based on historical data/records.
Implementation of projects not included in the APP shall not be
allowed.
EC PROCUREMENT PLANNING
PUBLIC BIDDING (COMPETITIVE BIDDING)

1. This is a method of procurement which is open to participation by any

interested party and which consists of the following processes:
advertisement, pre-bid conference, receipt and opening of bids,
evaluation of bids, post qualification, award of contract, contract
signing and Notice to Proceed.

2. This method shall be used for the procurement of contracts

amounting to P2Million and above.
GUIDELINES ON PUBLIC BIDDING

1. Preparation of Bid Documents by the EC

2. Invitation to Bid
3. Pre-bid Conference
4. Receipt / Opening of Bids
5. Bid Evaluation
6. Post-Qualification
7. Notice of Award
8. Contract Signing
9. Notice to Proceed to be issued by the EC
GUIDELINES ON PUBLIC BIDDING

I. Preparation of Bid Documents by the EC

1. ABC
2. Invitation to Bid
3. Eligibility Requirements
4. Instruction to Bidders
5. Terms of Reference
6. Scope of Work
7. Plans and Technical Specifications
8. Form of Bid, Price Form, List of Goods or Bill of Quantities
GUIDELINES ON PUBLIC BIDDING

I. Preparation of Bid Documents by the EC

9. Delivery time or completion schedule

10. Form, amount and validity period or bid security
11. Form and Amount of Performance Security and Warranty
12. Form of contract, General and Special Conditions of Contract including
provision of liquidated damages/penalty clause and warranty
13. Certification of Availability of funds and projects
14. Reservation clause
GUIDELINES ON PUBLIC BIDDING

II. Invitation to Bid

1. Name of contract to be bid and brief description
2. General statement on the criteria for eligibility check, examination and evaluation
of bids, and post-qualification
3. Date, time, and place of the deadline for submission and receipt of eligibility
requirements, the pre-bid conference, if any, the submission and receipt of bids,
and opening of bids
4. ABC, indicate whether VAT inclusive or not
5. Source of funding
6. Period of availability of bidding documents, place where they may be secured,
and price of bidding documents (non-refundable)
7. Delivery Schedule/Completion of Project
8. Contact details of the EC
GUIDELINES ON PUBLIC BIDDING
How much is the bidding document?
ABC Minimum Cost of
Bidding Documents
500,000 and below 500.00

More than 500,000 up to 1 Million 1,000.00

More than 1 Million up to 5 Million 5,000.00

More than 5 Million up to 10 Million 10,000.00

More than 10 Million up to 50 Million 25,000.00

More than 50 Million up to 500 50,000.00

Million
More than 500 Million 75,000.00
GUIDELINES ON PUBLIC BIDDING
III. Pre-bid Conference

• Not earlier than 7 but not more than 12 calendar days before the
submission and opening
• Attendance is optional unless expressly required
• For buyers of bidding documents
• Minutes of the meeting available to all participants not later than 5
calendar days
• Statement made at the pre-bid conference shall not modify the terms of
the bidding documents unless such statement is specifically identified in
writing as an amendment or as Supplemental Bulletin.
GUIDELINES ON PUBLIC BIDDING

IV. Receipt/Opening of Bids

A. Envelope 1 B. Envelope 2
1. Folder 1 1. Folder 1
2. Folder 2 2. Folder 2
3. Folder 3
4. Folder 4
GUIDELINES ON PUBLIC BIDDING

Pass or Fail?

I. Eligibility Requirements (Class “A” Documents)

A. LEGAL DOCUMENTS: Folder 1 (ENVELOPE I)

1. DTI business name registration/SEC registration certificate,

whichever is appropriate under laws of the Philippines;
2. Valid and current Mayor’s permit/municipal license; (principal place of
business)
3. BIR Value Added Tax registration;
4. Omnibus Sworn Statement Affidavit (ANNEX D);
GUIDELINES ON PUBLIC BIDDING

Pass or Fail?

5. Compliance with E.O No. 398

a.Proof of VAT payments for the past six months
b. Tax Clearance for the BIR to prove bidder’s full and timely payment
of taxes to the government.
c. A Certification under oath from the bidders responsible officers that
the bidder is free and clear of all liabilities with the government.
GUIDELINES ON PUBLIC BIDDING

Pass or Fail?

B. TECHNICAL DOCUMENTS: Folder 2 (ENVELOPE I)

1. Statement in matrix form all ongoing and completed government and

private contracts ( service contracts, maintenance contracts, purchase
orders, job order, etc.) within the relevant period, where applicable,
including contracts awarded but not yet started, if any.
a. Ongoing, Completed or Awarded but not yet started; within the
relevant period, where applicable.
i. The name of the contract;
ii. Date of contract;
GUIDELINES ON PUBLIC BIDDING

Pass or Fail?
iii. Amount of contract and value of outstanding contracts;
iv. Date of delivery;
v. End-user’s acceptance, if completed
b) Statement identifying the bidder’s single largest completed
contract similar to the contract to be bid within the relevant period
as provided in the bidding documents.
2. PCAB license (Philippine Contractors Accreditation Board) for
infrastructure Projects.
GUIDELINES ON PUBLIC BIDDING

Pass or Fail?
C. FINANCIAL DOCUMENTS: Folder 3 (ENVELOPE I)

1. Complete set of audited financial statements, stamped “received” by the BIR,

for the preceding calendar year, which should not be earlier than two (2) years
from the date of bid submission. Complete set of financial statement includes
the following:
1) Balance Sheet
2) Income Statement
3) Statement of Changes in Equity
4) Cash Flow Statement
5)Notes to Financial Statement
6)Statement of Management Responsibility for Financial Statement
GUIDELINES ON PUBLIC BIDDING

Pass or Fail?

2. The prospective bidder’s computation for its Net Financial Contract Capacity
(NFCC) should be equal or more than the ABC, or a commitment from a
universal or commercial bank to extend to it a credit line if awarded the
contract to be bid, in an amount not lower than the amount set by the procuring
entity, which shall be at least equal to 10% of the ABC to be bid.
GUIDELINES ON PUBLIC BIDDING

Pass or Fail?

Class “B” Documents : Folder 4 (ENVELOPE I)

1. Valid joint venture agreement, in case of a joint venture. Each

member of the joint venture shall submit the required eligibility
documents.
GUIDELINES ON PUBLIC BIDDING

Pass or Fail?

II. BID PROPOSAL (ENVELOPE 2)

A. Technical Proposal: Folder 1

1. Bid Security as to form, amount and validity period;
2. Confirming statement of Delivery Schedule;
3. Confirming statement on warranty being offered;
4. Details of Technical Specification

B. Financial Proposal: Folder 2

1. Bid prices in the prescribed bid form
GUIDELINES ON PUBLIC BIDDING

Failure of Bidding

There shall be a failure of bidding if:

1) No bids are received.

2) No bid qualifies as the Lowest Calculated Responsive Bid.
3) The bidder determined to be the LCRB refuses without justifiable
cause to accept the award of contract.
GUIDELINES ON PUBLIC BIDDING

Bid Security and Validity

1. All bids shall be accompanied by a bid security payable to the EC as
guarantee that the successful bidder shall enter into contract from receipt of
the Notice of Award. The required Bid Security are the following:
a. Cash, Cashier’s Check, Manager’s check, issued by a Universal or
Commercial Bank. (2% of ABC)
b. Bank draft/ Guarantee or irrevocable letter of credit issued by a
universal or commercial bank. (2% of ABC)
2. Bid securities of the ineligible bidders shall be returned, while bids rated
eligible shall be returned only after the bidder with the Lowest Calculated
Responsive Bid has signed the contract and furnished the performance
security.
GUIDELINES ON PUBLIC BIDDING

Bid Security and Validity

3. Bids and Bid Securities shall be valid for a reasonable period as

determined by the head of the procuring entity concerned, and shall be
indicated in the bidding documents, but in no case shall exceed 120
calendar days from the date of the opening of bids.
GUIDELINES ON PUBLIC BIDDING
Performance Security
• Upon the signing of the contract the winning bidder shall post a
performance security
• The forms of security are:
♦ Cash, Cashier’s check, Manager’s Check issued by a
Universal or Commercial Bank (5% of Contract Price for
Goods and Services)
♦ Bank draft/ Guarantee or irrevocable letter of credit issued by a
Universal or Commercial Bank ( 10% of Contract Price for
infrastructure projects)
GUIDELINES ON PUBLIC BIDDING
Computation of Net Financial Contracting Capacity (NFCC)

The computation of a prospective bidder’s NFCC must be at least equal to

the ABC to be bid calculated as follows:

NFCC = { (Current asset minus current liabilities) (K)}

Where:

K = 10 for a contract duration of one year or less, 15 for contract duration of more
than one year and up to two years, and 20 for a contract duration of more
than 2 years.
GUIDELINES ON PUBLIC BIDDING

V. Bid Evaluation

 Going beyond the pass and fail criteria.

 Rank the qualified bidders from lowest to highest.

 Declaration of the LCB.

GUIDELINES ON PUBLIC BIDDING

V. Bid Evaluation

 Figure vs Word

 Total price per item vs. price per item multiplied by quantity

 Stated total price vs actual sum of prices of component items

 Unit cost in the detailed estimate vs unit cost in bill quantities

GUIDELINES ON PUBLIC BIDDING
VI. Post-qualification

a. Legal Requirements

b. Technical Requirements

c. Financial Requirements

Declaration of the Lowest Calculated Responsive Bid

GUIDELINES ON PUBLIC BIDDING
VII. Notice of Award, Contract Signing, and Notice to Proceed
• BAC notifies within 3 calendar days all the other bidders in writing of
its recommendation.
• HOPE approves or disapproves the LCRB within 15 calendar days
from the determination of the BAC.
• In case of approval, HOPE issues Notice of Award
• Signing of contract and posting of performance security within 10
days from notice of award.
• Not later than 7 days from approval of the contract, issue NTP.
GUIDELINES ON PUBLIC BIDDING
Additional Provisions in the Contract
1. Reservation Clause

The HOPE reserves the right to reject any and all bids, declare a
failure of bidding, or not award the contract in the following situation:

a. If there is a prima facie evidence of collusion between the EC

officers/employees, or between the BAC and any of the bidders, or
between or among the bidders themselves, or between a bidder and
a third party, including any act which restricts, suppresses or
nullifies or tends to restrict, suppress or nullify competition;
GUIDELINES ON PUBLIC BIDDING

b. If the BAC is found to have failed in following the prescribed bidding

procedures; or
c. For any valid, justifiable and reasonable grounds where the award
of the contract will not redound to the benefit of the EC, as follows:
i. If the physical and economic conditions have significantly
changed so as to render the project no longer economically,
financially, or technically feasible, as determined by the HOPE;
ii. If the project is no longer necessary as determined by the
HOPE;
iii. If the source of funds for the project has been withheld or
reduced through no fault of the Procuring Entity.
GUIDELINES ON PUBLIC BIDDING
Additional Provisions in the Contract
2. Liquidated Damages

 All contracts executed shall contain a provision on liquidated

damages which will be payable in case of breach of contract.
 For the procurement of goods, services and infrastructure projects
the amount of liquidated damages shall be at least equal to 1/10 of
1% (.01%) of the cost of the unperformed portion of the contract, for
every day of delay.
 Once the cumulative amount of liquidated damages reaches 10% of
the amount of the contract, the contract shall be rescinded without
prejudice to other courses of action and remedies to be undertaken.
GUIDELINES ON PUBLIC BIDDING
Additional Provisions in the Contract
3. Warranty

 To assure that manufacturing defects shall be corrected by the

supplier a warranty shall be required from the contract awardee.
a) For supplies ----- minimum of 3 months
b) For equipment ----- 1 year after performance of the
contract
GUIDELINES ON PUBLIC BIDDING

Failure to Enter into Contract

 Failure to post the required performance security within the stipulated

period in the Bidding Documents, the BAC shall disqualify the said bidder
and shall undertake post qualification for the next ranked LCB.
 In case of a failure to post the required performance security, the bid
security shall be forfeited without prejudice to the imposition of sanctions.
 If no awards is possible, the contract shall be subjected to a new bidding
RECOMMENDED EARLIEST POSSIBLE TIME AND MAXIMUM PERIOD
ALLOWED FOR THE PROCUREMENT OF GOODS AND SERVICES
RECOMMENDED EARLIEST POSSIBLE TIME AND MAXIMUM PERIOD
ALLOWED FOR THE PROCUREMENT OF GOODS AND SERVICES
RECOMMENDED EARLIEST POSSIBLE TIME AND MAXIMUM PERIOD
ALLOWED FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
RECOMMENDED EARLIEST POSSIBLE TIME AND MAXIMUM PERIOD
ALLOWED FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
GUIDELINES ON PUBLIC BIDDING

Failure of Bidding

There shall be a failure of bidding if:

1) No bids are received.

2) No bid qualifies as the Lowest Calculated Responsive Bid.
3) The bidder determined to be the LCRB refuses without
justifiable cause to accept the award of contract.
 Composition of Bids and
Awards Committee (BAC),
Technical Working Group
(TWG), and BAC Secretariat
PROCUREMENT ACTORS

Head of the Bids and BAC Technical

Procuring Awards Secretariat Working
Entity Committee or Group (TWG)
(HoPE) (BAC) Procurement
Unit and
Canvassers
HEAD OF THE PROCURING ENTITY (HoPE)

• Board of Directors or

• General Manager or

• Acting General Manager or

• Officer-in-charge
BIDS AND AWARDS COMMITTEE

a. The BAC shall have at least five (5) members, but not to exceed 7
members.
b. The Chairman and the Vice chairman of the BAC should be an official
occupying a department level plantilla position and of permanent
status of employment in the cooperative.
c. The chairman and the members of the BAC shall be designated by the
General Manager and confirmed by the Board.
d. No member of the Board nor the General Manager and nor the
Internal Auditor can sit as Chairperson or member of the BAC. The
Internal Auditor or its representative however, shall sit as observer
during the pre-bid conference and opening bids.
COMPOSITION OF BAC

Chairman
Vice Chairman Department Manager or Area
Manager except the Finance
Manager)

Members
Members Department Manager (except the
Members Finance Manager)Area Manager,
Division Manager or Section Head
from any of the Departments
TERMS OF BAC MEMBERSHIP

 One year reckoned from date of appointment.

 Can be extended for another six (6) months but only for justifiable
reasons.
FUNCTIONS AND RESPONSIBILITIES OF THE BAC

1) Conducts Pre-procurement planning

2) Prepares the bid documents.
3) Advertise or post the invitations to bid.
4) Conduct pre-bid conference.
5) Determine the eligibility of the prospective bidders.
FUNCTIONS AND RESPONSIBILITIES OF THE BAC

6) Receive and open bids

7) Conduct the evaluation of bids
8) Undertake post qualification proceedings
9) Resolve requests for consideration
10) Recommend award of contracts to the General Manager and to the
Board
11) Recommend and conduct any of the alternative Methods of Procurement.
12) Recommend the imposition of sanctions as provided herein (Section VIII
of this guidelines)
COMPOSITION OF TECHNICAL WORKING GROUP

Chairman
Department Manager (except the Finance
Manager)Area Manager, Division Manager or
Section Chiefs from a pool of technical, financial,
Members and/or legal experts to assist the BAC in the
procurement process
Members
Members
FUNCTION OF THE TWG

Assists the BAC in the conduct of its functions particularly in the

preparation of Bid Documents review of the Technical Specifications,
Scope of Work, and Terms of Reference, eligibility screening evaluation
of bids, post qualification and resolution of request for reconsideration.
FUNCTIONS OF THE BAC SECRETARIAT

1) Provides administrative support to the BAC.

2) To record attendance during the pre-bid conference and during the
opening of bids.
3) To maintain all records pertaining to the BAC.
4) Organize and make all necessary arrangements for the BAC meetings,
attend BAC meetings as secretary and prepare minutes of meeting.
5) Prepare BAC resolutions that pertains to recommendations and other
matters.
6) Responsible for the sale/distribution of Bid Documents to interested
bidders.
OBSERVERS

• Who are they?

• What are their functions?

• What happens if there are no observers?

QUORUM

How to determine a quorum?

A majority of the total BAC composition shall constitute a quorum for the
transaction of business, provided that the presence of the Chairman and
Vice-Chairman shall be required.
Meetings and Honoraria
 The EC may grant honoraria to BAC, TWG and BAC Secretariat for every
successful completion of the entire procurement projects, subject to
availability of funds. Provided however, that the project/s or goods for
procurement is or are included in the APP duly approved by the EC Board.
 The Honoraria for each person shall not exceed the rates indicated below
per completed procurement project.

BAC Chairman ----- P3,000.00

BAC Members ----- P2,500.00
TWG Chairman and
members; and Secretariat ----- P2,00.00
ALTERNATIVE MODES OF PROCUREMENT

1. Simplified Bidding (Sealed Canvass)

2. Repeat Order

3. Open Canvass/Shopping/Emergency Purchase

4. Negotiated Procurement
SIMPLIFIED BIDDING (Sealed Canvass)

• Approved Budget of the Contract is P300,000.00 and above but

below P2Million provided that there is no splitting of
procurement.

Splitting of contracts?

• Accreditation of suppliers/contractors is updated for the last six

(6) months using the prescribed accreditation
procedure/requirements.
REPEAT ORDER

a) Contract on unit price of the repeat order must be the same or lower than those
in the original contract, provided that such prices are still the most
advantageous to the coop after price verification.

b) The repeat order will not result in splitting of contracts.

c) The repeat order shall be availed of only within 6 months from the date of the
Notice to Proceed arising from the original contract that was a result of
competitive bidding.

d) The repeat order shall not exceed twenty five percent (25%) of the quantity of
each item in the original contract that was a result of competitive bidding.
OPEN CANVASS/SHOPPING/EMERGENCY
PURCHASE

This mode of procurement can be resorted to when there is an unforeseen

contingency requiring immediate purchase, provided, that amount shall not
exceed P300 Thousand; provided further that at least three (3) price
quotations from accredited suppliers shall be obtained.
NEGOTIATED PROCUREMENT

Negotiated Procurement is a method of procurement of goods,

infrastructure projects and consulting services, whereby the procuring entity
directly negotiates a contract with a capable supplier, contractor or consultant
in any of the following cases:

❖ Two- failed Biddings

❖ Emergency Cases
❖ Take-Over of Contracts
❖ Adjacent or contiguous
INFRASTRUCTURE PROJECTS
1. The procuring entity shall upon a written request of the contractor which shall be
submitted as a contract document, make an advance payment to the contractor
in an amount not exceeding fifteen (15%) of the contract price to be made in
lump sum or, at the most two installments according to a schedule specified in
the Instructions to Bidders and other relevant Tender Document.

2. The advance payment shall be made only upon the submission to and
acceptance by the procuring entity of a bank guarantee/draft, or irrevocable letter
of credit of equivalent value from a commercial bank.

3. The advance payment shall be repaid by the contractor by deducting fifteen

percent (15%) from his periodic progress payments.
IMPOSITION OF PENALTIES
Imposition of Penalties

A. Bidders

1. The HOPE , subject to the authority delegated to the BAC, if any, shall impose
on bidders or prospective bidders, the penalty of suspension for one (1) year
for the first offense, and blacklisting for the second offense from participating
in any competitive bidding being undertaken by the Procuring Entity
concerned, for the following violations:
a) Submission of eligibility requirements containing false information.
b) Submission of Bids that contain false information, or the concealment of
such information in the Bids in order to influence the outcome of eligibility
screening, or any other stage of the competitive bidding.
IMPOSITION OF PENALTIES
c) Allowing the use of one’s name, or using the name of another for
purposes of competitive bidding.
d) Withdrawal of a bid, or refusal to accept an award, or enter into contract
with the EC without justifiable cause, after he had been adjudged as
having submitted the LCRB.
e) Refusal or failure to post the required performance security within the
prescribed period.
f) Termination of the contract due to the default of the bidder.
g) Refusal to clarify or validate in writing its bid during post-qualification
within a period of seven (7) calendar days from receipt of the request for
clarification.
h) Any documented attempt by a bidder to unduly influence the outcome of
the bidding in his favor.
IMPOSITION OF PENALTIES

i) All other acts that tend to defeat the purpose of the competitive
bidding, such as habitually withdrawing from bidding, submitting late
Bids or patently insufficient bid, for at least three (3) times within a
year, except for valid reasons.
2. In addition to the penalty of suspension, the bid security or the
performance security posted by the concerned bidder or prospective
bidder shall also be forfeited.
3. The HOPE may delegate to the BAC through a Board Resolution the
authority to impose the aforementioned penalties which shall be
communicated in writing.