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Nullification of procurement activity

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Nullification of procurement activity

Post by Doclc on Sat Oct 08, 2011 5:27 pm

Good day! I need your opinion on this one. The BAC submitted before the head of agency, its recommendation for an award of contract after conducting competitive public bidding. The HOD decided to nullify its recommendation on the basis that there is a need to expand the coverage of the project (the project would now cover its provincial offices). They believe that by confirming the recommendation and conducting a subsequent bidding of similar project is tantamount to splitting of contract. In its decision, the HOD made reference to the clause in the invitation to bid that they reserve the right to accept/reject any bid, to annul the bidding process... at any time prior to contract award, without thereby incurring any liability to the affected bidder or bidders.

Is it proper?

Thank you.
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Re: Nullification of procurement activity

Post by RDV @ GP3i on Sun Oct 09, 2011 12:09 pm

Doclc wrote:Good day! I need your opinion on this one. The BAC submitted before the head of agency, its recommendation for an award of contract after conducting competitive public bidding. The HOD decided to nullify its recommendation on the basis that there is a need to expand the coverage of the project (the project would now cover its provincial offices). They believe that by confirming the recommendation and conducting a subsequent bidding of similar project is tantamount to splitting of contract. In its decision, the HOD made reference to the clause in the invitation to bid that they reserve the right to accept/reject any bid, to annul the bidding process... at any time prior to contract award, without thereby incurring any liability to the affected bidder or bidders.

Is it proper?

Thank you.

On the belief by the HOPE that approving the BAC recommendation for award of contract will result to Splitting of Contract, if there is subsequent bidding of similar project, will not hold true if the subsequent procurement activity is still done through public bidding. Generally, there is splitting of contract if the purpose of dividing contract into sub-contracts or phases is to avoid the requirement of competitive bidding. So, if the succeeding procurement is still done by public bidding then there is no violation.

It is correct that the HOPE can exercise the 'Reservation Clause' as stated in the Invitation to Bid. The legal basis of that Reservation Clause, which states the right of the procuring entity to accept or reject any bid or annul the bidding process, is Sec. 41 of RA 9184 and its IRR. Therefore, if the reason by the HOPE of rejecting the BAC's recommendation is grounded on any of the situations mentioned in Sec. 41 of the IRR, that right granted to the HOPE to reject bid or annul the bidding process could be legally exercised by him/her.
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Re: Nullification of procurement activity

Post by jcolas on Mon Oct 10, 2011 11:45 am

"Dolc wrote:"
Good day! I need your opinion on this one. The BAC submitted before the head of agency, its recommendation for an award of contract after conducting competitive public bidding. The HOD decided to nullify its recommendation on the basis that there is a need to expand the coverage of the project (the project would now cover its provincial offices). They believe that by confirming the recommendation and conducting a subsequent bidding of similar project is tantamount to splitting of contract. In its decision, the HOD made reference to the clause in the invitation to bid that they reserve the right to accept/reject any bid, to annul the bidding process... at any time prior to contract award, without thereby incurring any liability to the affected bidder or bidders.

Is it proper?

Thank you

I fully subscribe to the post of Sir RDV, that the HOPE can Invoke Section 41 of RA 9184. My only concern is that, in the issue at bar, the reason of the HOPE and nullifying BAC Resolution to Award is untenable as their is no spliting whatsoever (that is if the subsequent procurement will be done through public bidding). What then is the recourse of the BAC? For me, the BAC should inform the HOPE in writing that their is no splitting;but the ir letter should contain legal citations in order that the HOPE will make a turnaround. I suggest that you cite COA Circular No. 76-41 dated July 30, 1976 which deals with Splitting of Reguisitions, Purchase Orders and Vouchers.
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Re: Nullification of procurement activity

Post by Doclc on Tue Oct 18, 2011 10:17 am

Thank you evry much for your help. Have a pleasant day to all.
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